The Air France-KLM Group has reported a first quarter 2022 net loss of €552 million on a year-over-year increase in revenue at constant currency of 106 percent to $3.89 billion. The Group ended the quarter with €10.8 billion in available liquidity.
On Thursday (May 5, 2022), the Air France-KLM Group reported their first quarter financial results for the period ending March 31, 2022. The Group reported a first quarter net loss of €552 million on a year-over-year increase in revenue of 105.9 percent (at constant currency) to $3.89 billion. For the first quarter, the Group reported a positive EBITDA of €221 million, and unit costs declined 0.1 percent year-over-three on 23 percent lower Group capacity versus the same period in 2019. At March 31, 2022, the company had cash, cash equivalents, short term investments and available credit lines of €10.8 billion, and total net debt of €7.7 billion, down €600 million from year-end 2021.
In Thursday’s announcement, Air France-KLM Group’s CEO, Mr. Benjamin Smith, said,
“The performance of the Air France-KLM Group over the first quarter of 2022 confirms that recovery is here. In spite of a challenging context, with the continued effect of the Omicron variant, the situation in Ukraine and the sharp increase of fuel prices, the Group posted once again a positive EBITDA and recorded strong bookings for the following quarters. March was notably very encouraging with a significant increase in demand for corporate and premium traffic, complementing the already strong leisure and VFR (visiting friends and relatives) demand across our worldwide network. This paves the way for a successful summer season in all our activities, which we continue to strengthen through our extensive transformation plan.”
In a separate press release on Thursday (May 5, 2022), KLM highlighted their financial results for the first quarter. The carrier’s revenue more than doubled year-over-year to €1.9 billion, and operating profits were €3 million, up €340 million compared to Q1 2021. During the first quarter, KLM received their final €140 million payment under the emergency job-retention scheme (NOW), which contributed to their positive result. The carrier has only drawn down €942 million from the 2020 loan package totaling €3.4 billion, with nothing being withdrawn during the first quarter of 2022. A second quarter payment of €311 million on the facility will reduce the balance to €631 million.
In Thursday’s announcment, KLM’s President & CEO, Pieter Elbers, said,
“These first quarter figures clearly give cause for optimism. Despite geopolitical tensions, high inflation and rising costs, recovery continues unabated. Bookings are approaching their 2019 levels, and our customers are keen and able to travel with us again. We will start repaying the loans in the coming (second) quarter. This involves an initial amount of €311 million and hopefully more later this year. This is a very important step in many ways, serving to highlight the resilience and commitment of all KLM colleagues. In the coming period, we will be focusing on repaying the loans on one hand, and operations and work pressure on the other. Numerous measures are being adopted in this regard, so that summer will be better than the situation in recent weeks.
Air-France KLM’s 2022 revenues were driven by a strong performance on routes to the Caribbean, Indian Ocean, Africa and South America. Cargo revenue increased year-over-year by 8.5 percent and 66 percent year-over-three to €910 million on a 10.7 percent increase in available ton kilometers (ATKs) versus Q1 2021. First quarter 2022 cargo capacity was still 14 percent below Q1 2019 capacity. When compared to December 2019, the number of full time equivalents (FTEs) at Air France (excluding Transavia) has been reduced by 16 percent, while the number of FTEs at KLM was down by 14 percent.
During the quarter, Air France added three Airbus A350-900s, two Airbus A220-300s and one Embraer E190, while phasing out one Boeing 777-200, one Airbus A320, two Airbus A319s, three A318s and two Embraer 145s. KLM also added two Embraer E195-E2s and phased out one Embraer E190. The Group also ordered four dedicated Airbus A350 Freighters during the period. Air France-KLM also entered into exclusive negotiations with CFM International for the engine configuration of the Group’s future A32oneo Family fleet.
Source(s): Air France-KLM Group, KLM Royal Dutch Airlines