Air France-KLM (AF) Q4 2024 earnings summary

Executive summary

• Revenue grew 4.8% year-over-year to €31.5bn in 2024, with a record Q4 and positive recurring adjusted operating free cash flow of €0.3bn.

• Operating result reached €1.6bn with a 5.1% margin, reversing last year's loss and supported by premium demand, improved unit revenues, and lower fuel prices.

• Premium and ancillary revenues drove growth, with premium revenue up 12% and ancillary revenue up 20–24%.

• Strong performance from Transavia and maintenance businesses, with Transavia returning to profitability and maintenance revenue up double digits.

• Continued progress on sustainability, including a major SAF agreement, 27% new generation fleet, and improved ESG ratings.

Financial highlights

• Q4 revenue up 6.4% to €7.9bn; Q4 operating margin at 5.0–5.8%, a significant improvement year-over-year.

• FY2024 operating margin at 5.1%; net debt/EBITDA at 1.7x, within the 1.5–2.0 target range.

• Recurring adjusted free cash flow for the year was €271–300m; cash at hand at year-end €9.4bn.

• Premium cabins contributed 26.9% of group revenue; cargo and maintenance segments delivered double-digit Q4 revenue growth.

• Net income attributable to equity holders was €317m, down from €934m in 2023, mainly due to higher costs and financial expenses.

Outlook and guidance

• 2025 group capacity to grow 4–5%, with Transavia up 10%; low single-digit unit cost increase expected.

• Net capex for 2025 guided at €3.2–3.4bn, mainly for fleet renewal; leverage ratio to remain 1.5x–2.0x.

• Targeting at least €300m EBIT improvement in 2025, with medium-term ambition of 8%+ operating margin by 2026–2028.

• Sustainability focus continues, aiming for 80% new generation aircraft and 30% CO2 intensity reduction by 2030.

• Strong liquidity and access to ESG-linked credit facilities support future investments.