Air France-KLM Group Reports Third Quarter Net Loss of €192 Million on €4.6 Billion in Revenue
The Air France-KLM Group has reported a third quarter 2021 net loss of €192 million on an 81 percent year-over-year increase in revenue to €4.57 billion. At September 30, 2021, the Group had cash, cash equivalents and marketable securities of €7.96 billion.
On Friday (October 29, 2021), Air France-KLM reported their third quarter 2021 financial results for the period ending September 30, 2021. The Group reported a third quarter net loss of €192 million on an 81 percent year-over-year increase in revenue to €4.57 billion. Both airlines performed significantly better than last year with Air France reporting an operating loss of €45 million on a year-over-year increase in revenue of 88.2 percent to €2.8 billion, and KLM Royal Dutch Airlines reporting a profit of €168 million on a year-over-year increase in revenue of 65.3 percent to €1.89 billion. The Group’s operating result was €132 million, up €1.178 billion versus Q3 2020. At September 30, 2021, the Group had cash, cash equivalents and marketable securities totaling €7.96 billion, gross financial debt of €16.1 billion, and a total net debt of €8.1 billion, down €2.9 billion from December 31st, 2020.
In Friday’s announcement, Air France-KLM Group’s CEO, Mr. Benjamin Smith, said,
“The Air France-KLM group had a good summer season thanks to the reopening of many countries. I would like to thank our employees who have enabled our customers to return to the skies in the best possible sanitary conditions. For the first time since the beginning of this Covid-19 crisis, the Q3 results show a positive operating result which encourages us to continue our efforts. The Covid-19 crisis is not yet over. Important continents such as Asia remain mainly closed and business travel is slowly recovering. This is why we must remain very agile and continue our transformation with the objective of improving both our economic and environmental performance. In this respect, the Air France-KLM Group has committed to setting greenhouse gas emission reduction targets in line with the Paris agreements and based on scientific data (through the science-based targets initiative). This new commitment comes in addition to our goal of zero net emissions by 2050.”
Commenting separately on KLM’s third quarter results, KLM’s President & CEO, Pieter Elbers, said,
“Our customers were able to travel more in the third quarter because there were fewer travel restrictions within the EU. Consequently, the market continued to recover. Together with our effective and ambitious network strategy and focus on costs, this contributed towards achieving positive third quarter results. I’m proud of this and would like to thank our customers and KLM colleagues alike. It’s clear that we are climbing out of the doldrums and that further recovery is underway. Marking another important milestone, the US will also open up to European passengers in the fourth quarter. While we’re not there yet, since the road to full recovery will be long and bumpy, we at KLM are ready for it.”
Transavia realized a third quarter operating profit of €105 million on a year-over-year increase in passenger revenue of 99.3 percent to €522 million, attributable to an increase in leisure traffic from both the Netherlands and France, and an increase in capacity to Greece, Spain and Portugal. During the third quarter Transavia operated at around 85 percent of pre-pandemic levels with a load factor of nearly 80 percent. Transavia France increased their fleet by ten aircraft during the first nine months of 2021, and will grow their fleet to 61 aircraft by summer 2022.
Source: Air France-KLM Group