Air France-KLM Reports First Quarter Net Loss of €344M on 40.6 percent Revenue Increase to €6.3B
The Air France-KLM Group has reported a first quarter net loss of €344 million on a year-over-year increase in revenue to €6.3 billion. At March 31, 2023, the Group had net cash totaling €7.2 billion and total net debt of €5.5 billion.
On Friday (May 5, 2023) the Air France-KLM Group reported their first quarter financial results for the period ending March 31, 2023. The Group reported a first quarter net loss of €344 million on a year-over-year increase in revenue of 40.6 percent to €6.3 billion. During Q1, the company’s revenue per available seat kilometer (RASK) was 8.20 euro cents, while cost per available seat kilometer at constant fuel (CASK) was 8.65 euro cents. Air France-KLM’s total net debt was reduced by €900 million during the first quarter compared to the end of 2022 to €5.5 billion. At March 31, 2023, the company had cash, cash equivalents and marketable securities totaling €7.2 billion.
In Friday’s announcement, Air France-KLM Group’s CEO, Mr. Benjamin Smith, said,
“In the first quarter, Air France-KLM further capitalized on the recovery momentum in the airline industry. I’d like to thank all my colleagues who have worked tirelessly throughout the quarter to ensure we continue on our path to sustained profitability. The Group continued to show strong revenue growth as well as robust cash flow generation thanks to the very encouraging summer ticket sales. This is paving the way for a busy holiday season across our global network, which all of our teams are actively gearing up for. I am also pleased that we have now fully repaid all State aid, which releases us from the associated restrictions and gives us back our full strategic autonomy. We now stand on our own feet. Looking ahead, we remain focused on further strengthening our balance sheet and delivering the transformation efforts that will enable us to continue to improve our competitiveness while accelerating our decarbonization efforts.”
Air France-KLM Group's First Quarter 2023 Financial Results - Courtesy Air France-KLM Group
During the first quarter, Air France-KLM welcomed 19.7 million passengers, up 35.3 percent versus the same period last year. In March, the company fully redeemed the outstanding €2.5 billion bank loan backed by the French State, by using proceeds from from the issuance of €1.0 billion Sustainability-linked Bonds and €1.5 billion in liquidity. The Group also repaid and refinanced €300 million of €600 million outstanding perpetual hybrid bonds held by the French State. The remaining €300 million was subsequently repaid on April 19, 2023.
Compared to year-end 2022, Air France-KLM has added one Boeing 787-10 Dreamliner, five Boeing 737-800s, five Airbus A220-300s and one Embraer E195-E2. Fleet departures during Q1 2023 include two Boeing 737-700s, one Airbus A321, two A319s and one CRJ-1000, resulting in a net fleet increase of six aircraft. During the second half of 2023, the Group will take delivery of their first Airbus A320neo/A321neos.
Source: Air France-KLM Group