Air France-KLM (AF) Q2 2024 earnings summary

Executive summary

• Q2 2024 group revenue rose 4% year-over-year to €7.9bn, with capacity and passenger numbers up 4% and 4.4% respectively, and a stable load factor.

• Operating result declined to €513m–€530m from over €700m in Q2 2023, impacted by higher fuel prices, increased unit costs, and a €40m negative effect from the Olympic Games.

• Net income for Q2 2024 was €165m, down from €612m in Q2 2023.

• Premium revenue grew 7.4% year-over-year, with premium leisure and ancillary revenues up significantly.

• Strategic partnerships advanced, including a joint venture with Airbus for A350 maintenance and a 19.9% stake in SAS, with SAS joining SkyTeam in September 2024.

Financial highlights

• Q2 2024 EBITDA was €1,170m, down from €1,328m in Q2 2023; operating margin declined to 6.5% from 9.6%.

• Net debt/EBITDA ratio at 1.6x at end June 2024, up from 1.2x in Q2 2023.

• Unit cost per ASK increased 1.7% year-over-year, mainly due to labor and fuel costs.

• Transavia saw 12% capacity growth and a 4.5% unit revenue increase, driven by new ancillary fees.

• Maintenance external business grew 23% year-over-year, with Q2 revenues up 14%.

Outlook and guidance

• FY 2024 group capacity guidance revised to 4% growth (previously 5%) to stabilize operations.

• Unit cost expected to rise 2% in Q3 and for the full year, with a target of flat unit cost in Q4.

• Fuel price expected to provide a €80m benefit in Q3 and over €200m in Q4.

• Olympics expected to have a €200m total impact in 2024, with €40m in Q2 and €160m in Q3.

• Net CapEx to be optimized below €3bn for the full year.