Air France-KLM (AF) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating result was stable at €1.2 billion, excluding a €160 million Olympic Games impact, with group revenue up 4% year-over-year and capacity growth of 3.6%.

• Net income for Q3 was €824 million, down €122 million from last year; operating margin declined to 13.1% from 15.5%.

• KLM faced significant cost pressures, launching a €450 million EBIT improvement plan, while Air France was impacted by Olympic Games and higher costs.

• Strategic partnership with SAS AB launched, including codeshare and loyalty benefits, and a 19.9% stake acquisition completed.

• Major sustainability progress with a 10-year, 1.5 million ton SAF agreement with TotalEnergies and multiple global SAF supply deals.

Financial highlights

• Q3 2024 revenue was €8.98 billion (+3.7% YoY); operating expenses €7.08 billion (+6.2% YoY); EBITDA €1.90 billion (down €97 million YoY).

• 9M 2024 revenue reached €23.58 billion (+4.3% YoY); operating result €1.20 billion (down €565 million YoY); net income €510 million (down €711 million YoY).

• Net debt/EBITDA ratio at 1.7x, within target range; net debt at €6.7 billion, up from €5.0 billion at end-2023.

• Cash at hand at end-September was €9.0 billion, down €1.5 billion from end-2023 due to deferred pension and social payments.

• Group unit cost per ASK up 3.4% year-over-year, above previous outlook due to staff and operational costs.

Outlook and guidance

• Demand remains strong, with load factors and advance bookings ahead of last year; Q4 bookings and capacity increases expected.

• Full-year 2024 unit cost guidance raised to +3% YoY (was +2%), mainly due to KLM and operational disruptions.

• Group capacity for 2024 to rise 4% YoY; net capex revised to €3 billion due to timing effects and asset sales delayed to Q1 2025.

• Proposed French aviation tax could reduce 2025 operating result by €90–170 million; Schiphol tariff hike may impact EBIT by €65–110 million.

• Fuel prices expected to remain favorable in 2025, with 50% hedged at below $800/ton.