Full Year 2016 results
FULL YEAR 2016
-
Results in line with target, main KPIs
show improvement
-
Operating income at 1,049 million
euros, up 269 million and up 558 million excluding currency
effects
-
Net result group share at 792 million
euros, up 674 million.
-
Continuous decrease in ex-fuel unit
costs at constant currency and pension costs, down 1.0% in line
with target and down 1.7% excluding strike impact and
profit-sharing expenses
-
Free cash flow after disposals of 693
million euros contributing to a further 652 million euro decrease
in net debt
-
Adjusted net debt / EBITDAR ratio of
2.9x, an improvement of 0.5 points compared to 31 December
2015
-
93.4 million passengers carried, up
4.0%
OUTLOOK
-
High level of uncertainty regarding
unit revenue and fuel price due to geopolitical, economical and
airline industry capacity environment
-
Resilient start to 2017
-
Smart growth in passenger operations,
an increase in available seat kilometres of between 3.0% and 3.5%
at Group level in 2017
-
Continued focus on unit cost reduction,
targeting a minimum of 1.5% in 2017 at constant currency, fuel
price and pension expense
-
Based on current forward prices and the
hedge portfolio, a fuel bill increase limited to 100 million
dollars in 2017
-
Maintaining strict capex discipline,
targeting positive free cash flow before disposals in 2017
-
Further net debt reduction, adjusted
net debt / EBITDAR ratio below 2.5x mid cycle by end 2020
The Board of Directors of Air
France-KLM, chaired by Jean-Marc Janaillac, met on 15th February
2017 to approve the accounts for the Full Year 2016.
Jean-Marc Janaillac made the
following comments: "Within a contrasting environment, Air
France-KLM delivered an improvement in its 2016 results, reflecting
the initiatives and efforts of its employees and the loyalty of
customers. While the fall in the oil price significantly reduced
the Group's costs, the geopolitical context, competition and
industry overcapacity all resulted in lower unit revenues. With
Trust Together, our strategic project, we are resolutely committed
to regaining the offensive, reinforcing our ability to innovate and
improving our competitiveness. In an economic and geopolitical
context that remains very uncertain, and faced with aggressive
competition, the status quo is not an option."
Key data
|
Fourth Quarter |
Full Year |
|
2016 |
2015* |
Change |
2016 |
2015* |
Change |
Passengers (thousands) |
22,608 |
21,338 |
+6.0% |
93,442 |
89,836 |
+4.0% |
Capacity (EASK m) |
83,575 |
81,639 |
+2.4% |
341,334 |
337,994 |
+1.0% |
Revenues (€m) |
6,086 |
6,242 |
-2.5% |
24,844 |
25,689 |
-3.3% |
EBITDAR (€m) |
846 |
797 |
+49 |
3,787 |
3,414 |
+373 |
EBITDA (€m) |
571 |
532 |
+39 |
2,714 |
2,387 |
+327 |
Operating
result (€m) |
94 |
137 |
-43 |
1,049 |
780 |
+269 |
Operating
margin (%) |
1.5% |
2.2% |
-0.7
pt |
4.2% |
3.0% |
+1.2
pt |
Lease
adjusted operating result ((€m) |
186 |
225 |
-39 |
1,407 |
1,122 |
+285 |
Lease
adjusted operating margin (%) |
3.1% |
3.6% |
-0.5
pt |
5.7% |
4.4% |
+1.3
pt |
Net
result, group share (€m) |
362 |
276 |
+86 |
792 |
118 |
+674 |
Free cash
flow after disposal (€m) |
446 |
67 |
+379 |
693 |
925 |
-232 |
Net debt
at end of period (€m) |
|
|
|
3,655 |
4,307 |
-652 |
*
Reclassification of Servair as a discontinued operation:
the consolidated financial statements of the
Group were revised as of 1st January 2016
in order to reflect Servair as a discontinued operation. The 2015
financial statements have been restated accordingly. Details of
this restatement can be found in the appendix of this press
release.
Air France-KLM carried 93.4
million passengers in 2016, an increase of 4.0% over last year.
Revenues amounted to 24.8 billion euros, down 3.3% compared to
2015.
The full year 2016 results were
in line with targets with the main KPIs showing an improvement.
The operating result stood at 1,049 million euros, up 269 million
and up 558 million euros excluding currency effects. The operating
result was notably impacted by a pilots strike in June and a cabin
crew strike in July, which had a negative effect of 130 million
euros. Adjusted for the interest portion of operating leases (1/3
of annual operating lease expenses), the operating margin was 5.7%
versus 4.4% at 31 December 2015. EBITDA amounted to 2,714 million
euros, an increase of 327 million euros
The increase in the 2016
operating result was mainly driven by the fuel
tailwind and the good cost performance, while there were
negative effects coming from the pressure on unit revenues and
currencies. The unit cost per EASK was down in
line with the target of 1.0%, on a constant currency, fuel
price and pension-related expense basis, against a capacity
increase measured in EASK of +1.0%. On a strike-adjusted basis and
corrected for the increase in profit-sharing expenses, the unit
cost per EASK decreased by 1.7%.
The average
number of staff decreased by 1,850 FTEs (1,400 FTEs at Air
France, 450 FTEs at KLM), resulting in a
productivity increase measured in EASK per FTE of 2.3% at Air
France and of 4.2% at KLM. As a result, on a constant
pension-related expense and profit-sharing basis, employee costs
decreased by 0.5% due to restructuring efforts in both Air France
and KLM, taking into account a net increase in the profit-sharing
expense of 77 million euros. Total employee costs including
temporary staff were stable (up 0.1%) at 7,474 million euros.
The fuel bill
amounted to 4,597 million euros, a sharp 25.7% fall compared to
2015. The decrease was driven by the drop in the fuel market
price which had a positive impact of 927 million euros and the drop
in fuel hedging losses which were down 605 million euros compared
to 2015.
In the full year 2016, currencies had a negative
97 million euro impact on revenues, mainly driven by the weakening
of several currencies, notably the GBP, BRL and CNY. The negative
effect of currencies on costs amounted to 192 million euros driven
by the strengthening of the dollar. The net impact of currencies on
the operating result thus amounted to a negative 289 million
euros.
All businesses
contributed to the improvement in operating result. The
passenger network operating result amounted to 1,057 million euros,
up 215 million euros and up 456 million euros excluding the
negative currency effect. Despite the challenging operating
environment, the Cargo results remained stable on a reported basis,
whereas both Maintenance and Transavia recorded further improvement
in their operating results.
Both Air France
and KLM contributed positively to the results. Full year 2016
operating result stood at 372 million euros at Air France and
amounted to 681 million euros at KLM.
|
Full Year |
Operating result per airline (€m) |
2016 |
2015* |
Change |
Air
France |
372 |
426 |
-54 |
Operating Margin (%) |
2.4% |
2.6% |
-0.2 pt |
KLM |
681 |
384 |
+297 |
Operating Margin (%) |
6.9% |
3.9% |
+3.0 pt |
* Reclassification of Servair as
a discontinued operation. Sum of individual airline results does
not add up to Air France-KLM total due to intercompany eliminations
at Group level
Passenger network business
|
Fourth Quarter |
Full Year |
Passenger network |
2016 |
2015 |
Change |
2016 |
2015 |
Change |
Passengers (thousands) |
19,768 |
19,156 |
+3.2% |
80,163 |
79,016 |
+1.5% |
Capacity
(ASK m) |
68,912 |
67,634 |
+1.9% |
278,807 |
276,897 |
+0.7% |
Traffic
(RPK m) |
58,427 |
56,719 |
+3.0% |
238,183 |
235,715 |
+1.0% |
Load
factor |
84.8% |
83.9% |
+0.9 pt |
85.4% |
85.1% |
+0.3 pt |
Total
passenger revenues (€m) |
4,799 |
4,983 |
-3.7% |
19,682 |
20,541 |
-4.2% |
Scheduled
passenger revenues (€m) |
4,599 |
4,787 |
-3.9% |
18,849 |
19,707 |
-4.4% |
Unit
revenue per ASK (€ cts) |
6.67 |
7.08 |
-5.7% |
6.76 |
7.12 |
-5.0% |
Unit
revenue per RPK (€ cts) |
7.87 |
8.44 |
-6.7% |
7.91 |
8.36 |
-5.3% |
Unit cost
per ASK (€ cts) |
6.57 |
6.85 |
-4.1% |
6.38 |
6.81 |
-6.3% |
Operating result (€m) |
74 |
156 |
-82 |
1,057 |
842 |
+215 |
Of
which long-haul (estimated) |
|
|
|
1,320 |
1,070 |
+250 |
Of
which medium-haul hub feeding (est.) |
|
|
|
-220 |
-160 |
-60 |
Of
which medium-haul point-to-point (est.) |
|
|
|
-50 |
-70 |
+20 |
A strong
passenger network performance with relatively resilient unit
revenues. Strict capacity discipline (available seat kilometer
(ASK) up by 0.7%) and active yield management limited the downward
pressure on unit revenue, particular on premium traffic, whose
long-haul unit revenue declined by 1.4%. Ancillary revenues (paid
options) were up by 12% amounting to 515 million euros.
On the long-haul network, capacity
measured in ASKs was up 0.6%, while unit revenue was down 4.7%
excluding currency impact. In addition to the soft local flows to
France as a result of terrorism, the capacity-demand imbalances
observed on different parts of the network caused additional
downward pressure on unit revenues. Nevertheless, the estimated
long-haul operating result was up 250 million euros to 1,320
million euros.
On the medium-haul hub feeding
activity, capacity increased by 2.0%, whereas unit revenues
decreased by 5.4% excluding currency. The medium-haul network was
particularly impacted by the weak local flows to France affecting
the operating result which decreased by 60 million euros.
As planned, medium-haul
point-to-point capacity was further reduced by 3.9%, leading to an
improvement in unit revenues of 1.0%, contributing to the 20
million euros improvement in the point-to-point operating
result.
Cargo business
|
Fourth Quarter |
Full Year |
Cargo |
2016 |
2015 |
Change |
2016 |
2015 |
Change |
Tons (thousands) |
293 |
309 |
-5.0% |
1,130 |
1,206 |
-6.2% |
Capacity (ATK m) |
3,491 |
3,635 |
-4.0% |
14,228 |
14,912 |
-4.6% |
Traffic (RTK m) |
2,207 |
2,296 |
-3.9% |
8,441 |
9,007 |
-6.3% |
Load factor |
63.2% |
63.2% |
+0.0 pt |
59.3% |
60.4% |
-1.1 pt |
Total Cargo revenues (€m) |
546 |
612 |
-10.8% |
2,069 |
2,425 |
-14.7% |
Scheduled cargo revenues (€m) |
500 |
567 |
-11.8% |
1,904 |
2,263 |
-15.9% |
Unit revenue per ATK (€ cts) |
14.3 |
15.6 |
-8.1% |
13.4 |
15.2 |
-11.8% |
Unit revenue per RTK (€ cts) |
22.7 |
24.7 |
-8.0% |
22.6 |
25.1 |
-10.2% |
Unit cost per ATK (€ cts) |
15.2 |
16.2 |
-6.6% |
15.1 |
16.8 |
-10.2% |
Operating result (€m) |
-28 |
-23 |
-5 |
-244 |
-245 |
+1 |
The Group
continued to restructure its Cargo activity resulting in its
gradual turnaround, in order to address the weak global trade
and structural industry overcapacity, and to maximize its
contribution to the Group. During full year 2016,
full-freighter capacity was reduced by 24% with a reduction of the
number of full-freighters in operation to six, leading to a 4.6%
decrease in total Cargo capacity measured in ATK. The ex-fuel unit
cost was down 2.6% like-for-like as a result of the restructuring
efforts, mainly driven by the 6.7% headcount reduction over the
course of the year, while productivity measured in ATK per FTE
increased by 2.3%. The losses on the full-freighters were further
reduced by 14 million euros resulting in an operating loss of 28
million euros.
It has been decided to change the
Cargo reporting as per fiscal year 2017 based on contribution
margin and to include it in the passenger network results. This
change will be effective as from the Q1 2017 results
presentation.
Maintenance business
|
Fourth Quarter |
Full Year |
Maintenance |
2016 |
2015 |
Change |
2016 |
2015 |
Change |
Total revenues (€m) |
1,130 |
1,075 |
+5.1% |
4,182 |
3,987 |
+4.9% |
Third party revenues (€m) |
486 |
429 |
+13.3% |
1,834 |
1,577 |
+16.3% |
Operating result (€m) |
66 |
47 |
+19 |
238 |
214 |
+24 |
Operating margin (%) |
5.8% |
4.4% |
+1.4 pt |
5.7% |
5.4% |
+0.3 pt |
In full year 2016, both third
party revenues and the operating result further increased,
strengthening the growth of the Maintenance
business and securing its position as world leader in the
airline MRO business. Third-party revenues amounted to 1,834
million euros, up by 16% driven by the contracts gained over the
past few years. Over the period, the maintenance order book
recorded a 6.0% increase to reach a year-end record of 8.9 billion
dollars, including several new A350 and B787 support contracts, and
securing future growth and its ambition of value creation. The
operating margin was up by 0.3 points to 5.7% (operating result /
total revenues) driven by the growth in the Engine and Component
segments and the increase in contribution margin from the Airframe
business.
Transavia
|
Fourth Quarter |
Full Year |
Transavia |
2016 |
2015 |
Change |
2016 |
2015 |
Change |
Passengers (thousands) |
2,840 |
2,182 |
+30.2% |
13,279 |
10,820 |
+22.7% |
Capacity (ASK m) |
5,646 |
4,592 |
+20.2% |
25,762 |
22,432 |
+14.8% |
Traffic (RPK m) |
4,959 |
4,007 |
+18.8% |
22,983 |
20,169 |
+14.0% |
Load factor |
87.9% |
87.2% |
+0.6 pt |
89.2% |
89.9% |
-0.7 pt |
Total passenger revenues (€m) |
245 |
207 |
+18.4% |
1,218 |
1,099 |
+10.8% |
Scheduled passenger revenues (€m) |
241 |
205 |
+17.6% |
1,206 |
1,086 |
+11.0% |
Unit revenue per ASK (€ cts) |
4.27 |
4.41 |
-3.1% |
4.68 |
4.84 |
-3.3% |
Unit revenue per RPK (€ cts) |
4.86 |
5.05 |
-3.8% |
5.24 |
5.38 |
-2.5% |
Unit cost per ASK (€ cts) |
4.57 |
5.21 |
-12.2% |
4.68 |
5.00 |
-6.3% |
Operating result (€m) |
-17 |
-37 |
+20 |
0 |
-35 |
+35 |
The accelerated
ramp-up of Transavia is on track, resulting in
a break-even operating result for the full year 2016. Transavia
currently serves more than 100 destinations and carrying 13.3
million passengers. Capacity in France was up by 23%, whereas
capacity in the Netherlands was up by 11%. Transavia is now the
number one low cost carrier in the Netherlands and at Paris Orly,
capturing the growth in the European leisure market.
Financial situation
|
Full Year |
In € million |
2016 |
2015* |
Change |
Cash flow before change in WCR and Voluntary Departure
Plans, continuing operations |
2,364 |
1,956 |
+408 |
Cash out related to Voluntary Departure Plans |
-225 |
-172 |
-53 |
Change in Working Capital Requirement (WCR) |
+67 |
+83 |
-16 |
Operating cash flow |
2,206 |
1,867 |
+339 |
Net investments before sale & lease-back |
-1,859 |
-1,278 |
-581 |
Cash received through sale & lease-back
transactions |
0 |
0 |
0 |
Net investments after sale & lease-back |
-1,859 |
-1,278 |
-581 |
Operating free cash flow |
347 |
589 |
-242 |
* Reclassification of Servair as
a discontinued operation
Due to the disciplined growth in
investments, the free cash flow before disposals was positive
at 347 million euros. Investment in the fleet
continued to improve its competitiveness resulting in fuel
efficiencies, lower maintenance costs and move up-market in terms
of products and services.
Net debt was further reduced
thanks to free cash flow generation. As a result, net debt
amounted to 3,655 million euros at 31 December 2016, versus 4,307
million euros at 31 December 2015, an improvement of 652 million
euros despite currencies having a significant negative impact of 73
million euros. The Group sold a total of 4.95 millions of Amadeus
shares representing 1.13% of the share capital and finalized the
transaction to sell 49.99% of the Servair share capital and
transfer its operational control to gategroup.
2016 is the fifth year of
improvement in the adjusted net debt / EBITDAR ratio, which
decreased to 2.9x at 31 December 2016 from 3.4x at 31 December
2015.
During the course of the year the
liquidity situation was further strengthened and finance costs
further reduced. The Group continues to enjoy a good level of
liquidity, with net cash of 4.3 billion euros at 31 December 2016,
and undrawn credit lines of 1.8 billion euros. In 2016, the Group
successfully placed a six-year bond for 400 million euros and an
issue of ten-year senior notes for 145 million US dollars.
Outlook
The global context remains highly
uncertain regarding the geopolitical and economic environment in
which we operate, fuel prices and the ongoing overcapacity on
several markets, resulting in pressure on unit revenues.
However the January traffic
statistics and forward bookings indicates a resilient start to the
new year. In January 2017 the unit revenue was down by only 0.7% at
constant currency for the passenger network and down only 0.6% at
constant currency for Transavia.
The Group is targeting a growth
for the passenger group (Air France, KLM and Transavia) of between
3.0% and 3.5% measured in ASKs for 2017 in order to regain the
offensive in long-haul and to improve the performance in
medium-haul.
To improve its competitiveness,
the Group plans to act on all levels by pursuing and amplifying the
initiatives already under way in terms of unit cost reduction. The
unit cost reduction target for 2017 is in excess of 1.5% at
constant currency, fuel price and pension related expenses.
Based on the forward curve of 27
January 2017, the Full Year 2017 fuel bill is expected to increase
by 100 million dollars compared to 2016 and to reach 4.9 billion
euros[1], and the
Full Year 2018 fuel bill is expected to increase to 5.0 billion
euros[2].
Regarding the balance sheet, the
Group is maintaining strict capex discipline, targeting positive
free cash flow before disposals. The 2017 investment plan stands at
between 1.7 billion euros and 2.2 billion euros.
The Group is pursuing a further
reduction in net debt, targeting an adjusted net debt to EBITDAR
below 2.5x mid cycle by the end of 2020.
We plan to
present the comprehensive Trust Together vision at the forthcoming
Investor Day, scheduled for 12 May 2017.
*****
The audit procedures for the
consolidated accounts have taken place. The certification report
will be published following the completion of the procedures
necessary for the filing of the Registration Document.
The results presentation is
available at www.airfranceklm.com on 16
February 2017 from 7:15 am CET.
An Analysts' Meeting hosted by Mr Janaillac (CEO)
and Mr Gagey (CFO) will be held on 16 February 2017 at 08.30 CET at
the Pullman Paris Tour Eiffel hotel, 18, avenue de Suffren (75015
Paris).
A live webcast of the Analysts'
Meeting will also be available on the website (password AFKL).
To connect to the conference call, please
dial:
-
France: +33 (0)1 76 77 25 06
-
Netherlands: +31 (0)20 703 8261
-
United Kingdom: +44 (0)203 043
2002
-
USA: +1 719-325-2226
Confirmation Code: 8241239
Investor relations
|
Press |
Marie-Agnès de Peslouan |
+33 1 41
56 56 00 |
Head of Investor Relations |
|
Tel : +33 1 49 89 52 59
Email: madepeslouan@airfranceklm.com |
|
|
|
Dirk Voermans
Senior manager, Investor Relations
Tel : +33 1 49 89 52 60
Email: divoermans@airfranceklm.com |
|
INCOME STATEMENT
|
|
Fourth Quarter |
Full Year |
|
In millions euros |
2016 |
2015* |
Change |
2016 |
2015* |
Change |
|
|
|
|
|
|
|
|
Sales |
6,086 |
6,242 |
-2.5% |
24,844 |
25,689 |
-3.3% |
Other revenues |
1 |
1 |
0.0% |
2 |
2 |
0.0% |
Revenues |
6,087 |
6,243 |
-2.5% |
24,846 |
25,691 |
-3.3% |
Aircraft fuel |
-1,090 |
-1,363 |
-20.0% |
-4,597 |
-6,183 |
-25.7% |
Chartering costs |
-100 |
-105 |
-4.8% |
-424 |
-430 |
-1.4% |
Landing fees and en route charges |
-463 |
-469 |
-1.3% |
-1,900 |
-1,947 |
-2.4% |
Catering |
-109 |
-112 |
-2.7% |
-445 |
-462 |
-3.7% |
Handling charges and other operating costs |
-369 |
-389 |
-5.1% |
-1,565 |
-1,536 |
1.9% |
Aircraft maintenance costs |
-622 |
-715 |
-13.0% |
-2,469 |
-2,372 |
4.1% |
Commercial and distribution costs |
-215 |
-193 |
11.4% |
-905 |
-896 |
1.0% |
Other external expenses |
-498 |
-480 |
3.8% |
-1,958 |
-1,942 |
0.8% |
Salaries and related costs |
-1,931 |
-1,882 |
2.6% |
-7,474 |
-7,464 |
0.1% |
Taxes other than income taxes |
-39 |
-35 |
11.4% |
-164 |
-155 |
5.8% |
Other income and expenses |
195 |
297 |
-34.3% |
842 |
1,110 |
-24.1% |
EBITDAR |
846 |
797 |
6.1% |
3,787 |
3,414 |
10.9% |
Aircraft operating lease costs |
-275 |
-265 |
3.8% |
-1,073 |
-1,027 |
4.5% |
EBITDA |
571 |
532 |
7.3% |
2,714 |
2,387 |
13.7% |
Amortization, depreciation and provisions |
-477 |
-395 |
20.8% |
-1,665 |
-1,607 |
3.6% |
INCOME FROM CURRENT OPERATIONS |
94 |
137 |
-31.4% |
1,049 |
780 |
34.5% |
Sales of aircraft equipment |
5 |
0 |
na |
21 |
-5 |
nm |
Other non-current income and expenses |
153 |
217 |
-29.5% |
46 |
305 |
-84.9% |
INCOME FROM OPERATING ACTIVITIES |
252 |
354 |
-28.8% |
1,116 |
1,080 |
3.3% |
Income from cash and cash equivalents |
10 |
15 |
-33.3% |
49 |
62 |
-21.0% |
Cost of financial debt |
-72 |
-81 |
-11.1% |
-309 |
-372 |
-16.9% |
Net cost of financial debt |
-62 |
-66 |
-6.1% |
-260 |
-310 |
-16.1% |
Other financial income and expenses |
45 |
6 |
-650% |
-33 |
-604 |
94.5% |
INCOME BEFORE TAX |
235 |
294 |
-20.1% |
823 |
166 |
N/A |
Income taxes |
-128 |
-25 |
412% |
-294 |
-30 |
880% |
NET INCOME OF CONSOLIDATED
COMPANIES |
107 |
269 |
-60.2% |
529 |
136 |
289% |
Share of profits (losses) of associates |
-10 |
2 |
Na |
-7 |
-35 |
-80% |
INCOME FROM CONTINUING
OPERATIONS |
97 |
271 |
-64.2% |
522 |
101 |
417% |
Net income from discontinued operations |
256 |
9 |
nm |
270 |
26 |
939% |
NET INCOME FOR THE PERIOD |
353 |
280 |
26.1% |
792 |
127 |
524% |
Minority interest |
9 |
-4 |
na |
0 |
-9 |
nm |
NET INCOME FOR THE PERIOD -
GROUP |
362 |
276 |
31.2% |
792 |
118 |
571% |
* Reclassification of
Servair as a discontinued operation
BALANCE SHEET
Assets
In million euros |
December 31,
2016 |
December 31, 2015* |
Goodwill |
218 |
247 |
Intangible assets |
1,066 |
1,018 |
Flight
equipment |
9,119 |
8,743 |
Other
property, plant and equipment |
1,480 |
1,670 |
Investments in equity associates |
292 |
118 |
Pension
assets |
1,462 |
1,773 |
Other
financial assets |
1,064 |
1,224 |
Deferred
tax assets |
176 |
702 |
Other
non-current assets |
448 |
295 |
Total
non-current assets |
15,325 |
15,790 |
Assets held for sale |
0 |
4 |
Other short-term financial assets |
130 |
967 |
Inventories |
566 |
532 |
Trade receivables |
1,868 |
1,800 |
Other current assets |
1,105 |
1,138 |
Cash and cash equivalents |
3,938 |
3,104 |
Total
current assets |
7,607 |
7,545 |
Total
assets |
22,932 |
23,335 |
* Reclassification of
Servair as a discontinued operation
Liabilities and equity In million
euros |
December 31,
2016 |
December 31, 2015* |
Issued
capital |
300 |
300 |
Additional paid-in capital |
2,971 |
2,971 |
Treasury
shares |
-67 |
-85 |
Perpetual |
600 |
600 |
Reserves
and retained earnings |
-2,520 |
-3,561 |
Equity
attributable to equity holders of Air France-KLM |
1,284 |
225 |
Non-controlling interests |
12 |
48 |
Total
Equity |
1,296 |
273 |
Pension
provisions |
2,119 |
1,995 |
Other
provisions |
1,673 |
1,513 |
Long-term
debt |
7,431 |
7,060 |
Deferred
tax liabilities |
-12 |
11 |
Other
non-current liabilities |
284 |
484 |
Total
non-current liabilities |
11,495 |
11,063 |
Provisions |
654 |
742 |
Current
portion of long-term debt |
1,021 |
2,017 |
Trade
payables |
2,359 |
2,395 |
Deferred
revenue on ticket sales |
2,517 |
2,515 |
Frequent
flyer programs |
810 |
760 |
Other
current liabilities |
2,775 |
3,567 |
Bank
overdrafts |
5 |
3 |
Total
current liabilities |
10,141 |
11,999 |
Total
equity and liabilities |
22,932 |
23,335 |
* Reclassification of
Servair as a discontinued operation
CONSOLIDATED STATEMENT OF CASH
FLOWS
In €
millions |
2016 |
2015* |
Net
income from continuing operations |
522 |
101 |
Net
income from discontinued operations |
270 |
26 |
Amortization, depreciation and operating provisions |
1,665 |
1,632 |
Financial
provisions |
5 |
59 |
Loss (gain) on disposals of tangible and intangible
assets |
-86 |
-224 |
Loss (gain)on disposals of subsidiaries and associates |
-312 |
-224 |
Derivatives - non monetary result |
-179 |
91 |
Unrealized foreign exchange gains and losses, net |
89 |
294 |
Share of
(profits) losses of associates |
6 |
30 |
Deferred
taxes |
264 |
4 |
Impairment |
2 |
5 |
Other
non-monetary items |
-64 |
31 |
Subtotal |
2,182 |
1,825 |
Of which discontinued operations |
43 |
41 |
(Increase) / decrease in inventories |
-61 |
36 |
(Increase) / decrease in trade receivables |
-104 |
-55 |
Increase
/ (decrease) in trade payables |
23 |
-64 |
Change in
other receivables and payables |
209 |
166 |
Change in working capital from discontinued
operations |
-10 |
-12 |
Net cash
flow from operating activities |
2,239 |
1,896 |
Acquisition of subsidiaries, of shares in non-controlled
entities |
-18 |
-6 |
Purchase
of property plants, equipments and intangible assets |
-2,072 |
-1,628 |
Proceeds
on disposal of subsidiaries, of shares in non-controlled
entities |
364 |
342 |
Proceeds
on disposal of property, plant and equipment and intangible
assets |
213 |
350 |
Dividends
received |
7 |
2 |
Decrease
(increase) in net investments, more than 3 months |
791 |
-208 |
Net cash flow used in investing activities of discontinued
operations |
-12 |
-14 |
Net cash
flow used in investing activities |
-727 |
-1,162 |
Perpetual |
0- |
600 |
Sale of
minority interest without change in control |
15 |
- |
Issuance
of debt |
1,331 |
1,062 |
Repayment
on debt |
-1,430 |
-1,540 |
Payment
of debt resulting from finance lease liabilities |
-481 |
-661 |
New
loans |
-129 |
-87 |
Repayment
on loans |
43 |
140 |
Dividends
and coupons on perpetual paid |
-38 |
-19 |
Net cash flow used in financing activities of discontinued
operations |
22 |
1 |
Net cash
flow from financing activities |
-667 |
-504 |
Effect of exchange rate on cash and cash equivalents and bank
overdrafts |
-13 |
-43 |
Effect of exch. rate on cash and cash eq.
and bank overdrafts of disc. ops. |
0 |
4 |
Change in
cash and cash equivalents and bank overdrafts |
832 |
191 |
Cash and
cash equivalents and bank overdrafts at beginning of period |
3,101 |
2,910 |
Cash and
cash equivalents and bank overdrafts at end of period |
3,933 |
3,101 |
* Reclassification of
Servair as a discontinued operation
KEY FINANCIAL INDICATORS
EBITDA and EBITDAR
In million euros |
Q4 2016 |
Q4 2015* |
FY 2016 |
FY 2015* |
Income/(loss) from current operations |
94 |
137 |
1,049 |
780 |
Amortization, depreciation and provisions |
476 |
395 |
1,665 |
1,607 |
EBITDA |
571 |
532 |
2,714 |
2,387 |
Aircraft operating lease costs |
276 |
265 |
1,073 |
1,027 |
EBITDAR |
846 |
797 |
3,787 |
3,414 |
* Reclassification of
Servair as a discontinued operation
Restated net result, group
share
In million euros |
Q4 2016 |
Q4 2015* |
FY 2016 |
FY 2015* |
Net income/(loss), Group share (in €m) |
362 |
276 |
792 |
118 |
Net income/(loss) from discontinued operations (in
€m) |
(256) |
(9) |
(270) |
(26) |
Unrealized foreign exchange gains and losses, net (in
€m) |
(32) |
26 |
89 |
294 |
Change in fair value of financial assets and liabilities
(derivatives) (in €m) |
(48) |
(67) |
(179) |
91 |
Non-current income and expenses (in €m) |
(158) |
(217) |
(67) |
(300) |
Depreciation of shares available for sale (in €m) |
0 |
3 |
0 |
16 |
De-recognition of deferred tax assets (in €m) |
44 |
0 |
44 |
0 |
Restated net income/(loss), group share
(in €m) |
(88) |
12 |
409 |
193 |
Restated net income/(loss) per share (in €) |
-0.32 |
0.02 |
1.30 |
0.59 |
* Reclassification of
Servair as a discontinued operation
Return on capital employed
(ROCE)
In million euros |
31 Dec. 2016 |
31 Dec. 2015* |
31 Dec. 2015* |
31 Dec. 2014 |
Goodwill and intangible assets |
1,284 |
1,265 |
1,265 |
1,252 |
Flight equipment |
9,119 |
8,743 |
8,743 |
8,728 |
Other property, plant and equipment |
1,480 |
1,670 |
1,670 |
1,750 |
Investments in equity associates |
292 |
118 |
118 |
139 |
Financial assets excluding shares available for sale,
marketable securities and financial deposits |
224 |
225 |
225 |
152 |
Provisions, excluding pension, cargo litigation and
restructuring |
(1,706) |
(1,558) |
(1,558) |
(1,434) |
WCR, excluding market value of derivatives |
(5,317) |
(5,125) |
(5,125) |
(4,928) |
Capital employed before operating
leases |
5,376 |
5,338 |
5,338 |
5,659 |
Operating leases x7 |
7,511 |
7,189 |
Average capital employed (A) |
12,868 |
12,688 |
Adjusted results from current operations |
1,414 |
1,129 |
- Dividends received |
(2) |
(2) |
- Share of profits (losses) of associates |
(7) |
(35) |
- Tax recognized in the adjusted net result |
(250) |
(30) |
Adjusted result from current operations
after tax (B) |
1,155 |
1,062 |
ROCE, trailing 12 months (B/A) |
9.0% |
8.4% |
* Reclassification of
Servair as a discontinued operation
Net debt
Balance sheet at
(In million euros) |
31 December
2016 |
31 December 2015* |
Current and non-current financial debt |
8,452 |
9,077 |
Deposits on aircraft under finance lease |
(336) |
-453 |
Financial assets pledged (OCEANE swap) |
0 |
-393 |
Currency hedge on financial debt |
(49) |
-40 |
Accrued interest |
(89) |
-95 |
Gross financial debt (A) |
7,978 |
8,096 |
Cash and cash equivalents |
3,938 |
3,104 |
Marketable securities |
53 |
466 |
Cash pledges |
50 |
18 |
Deposits (bonds) |
298 |
204 |
Bank overdrafts |
(5) |
(3) |
Other |
(11) |
0 |
Net cash (B) |
4,323 |
3,789 |
Net debt (A) - (B) |
3,655 |
4,307 |
* Reclassification of
Servair as a discontinued operation
Adjusted net debt and adjusted
net debt/EBITDAR ratio
|
31 December
2016 |
31 December 2015* |
Net debt (in €m) |
3,655 |
4,307 |
Aircraft operating leases x 7 (in €m) |
7,511 |
7,189 |
Adjusted net debt (in €m) |
11,166 |
11,496 |
EBITDAR (in €m) |
3,787 |
3,414 |
Adjusted net debt/EBITDAR ratio |
2.9 x |
3.4 x |
* Reclassification of
Servair as a discontinued operation
Operating free cash flow
In million euros |
2016 |
2015* |
Net cash flow from operating activities, continued
operations |
2,206 |
1,867 |
Investment in property, plant, equipment and intangible
assets |
(2,072) |
(1,628) |
Proceeds on disposal of property, plant, equipment and
intangible assets |
213 |
350 |
Operating free cash flow, excluding
discontinued operations |
347 |
589 |
Disposals |
346 |
336 |
Operating free cash after
disposal |
693 |
925 |
* Operating free cash flow
is including the LHR slot sale in October 2015, which is accounted
for in net investments as intangible asset disposal
Lease adjusted operating
result
In million euros |
Q4 2016 |
Q4 2015* |
FY 2016 |
FY 2015* |
Operating result |
94 |
137 |
1,049 |
780 |
Aircraft operating leases x 1/3 |
92 |
88 |
358 |
342 |
Lease adjusted operating result |
186 |
225 |
1,407 |
1,122 |
Lease adjusted operating margin |
3.1% |
3.6% |
5.7% |
4.4% |
* Reclassification of
Servair as a discontinued operation
Unit cost: net cost per
EASK
|
Q4 2016 |
Q4 2015* |
FY 2016 |
FY 2015* |
Revenues (in €m) |
6,086 |
6,242 |
24,844 |
25,689 |
Income/(loss) from current operations (in €m) |
94 |
137 |
1,049 |
780 |
Total operating expense (in €m) |
(5,992) |
(6,105) |
(23,795) |
(24,909) |
Passenger network business - other revenues (in €m) |
200 |
196 |
833 |
834 |
Cargo business - other revenues (in €m) |
46 |
45 |
165 |
162 |
Third-party revenues in the maintenance business (in €m) |
486 |
429 |
1,834 |
1,577 |
Transavia - other revenues (in €m) |
4 |
2 |
12 |
13 |
Third-party revenues of other businesses (in €m) |
10 |
11 |
41 |
47 |
Net cost (in €m) |
5,246 |
5,422 |
20,910 |
22,276 |
Capacity produced, reported in EASK |
83,575 |
81,639 |
341,334 |
337,994 |
Net cost per EASK (in € cents per
EASK) |
6.28 |
6.64 |
6.13 |
6.59 |
Gross change |
|
-5.5% |
|
-7.0% |
Currency effect on net costs (in €m) |
|
59 |
|
188 |
Change at constant currency |
|
-6.5% |
|
-7.8% |
Fuel price effect (in €m) |
|
(274) |
|
(1,531) |
Change on a constant currency and fuel price
basis |
|
-1.6% |
|
-1.1% |
Change in pension-related expenses (in €m) |
|
-18 |
|
-28 |
Net cost per EASK on a constant currency,
fuel price and pension-related expenses basis (in € cents per
EASK) |
6.28 |
6.35 |
6.13 |
6.18 |
Change on a constant
currency, fuel price and pension-related expenses
basis |
|
-1.3% |
|
-1.0% |
* Reclassification of
Servair as a discontinued operation
INDIVIDUAL AIRLINE
RESULTS
Air France
|
Q4 2016 |
Q4 2015* |
Change |
FY 2016 |
FY 2015* |
Change |
Revenue (€m) |
3,836 |
3,952 |
-2.9% |
15,414 |
16,099 |
-4.3% |
EBITDA (€m) |
393 |
364 |
+29 |
1,514 |
1,465 |
+49 |
Operating result (€m) |
46 |
102 |
-56 |
372 |
426 |
-54 |
Operating margin |
1.2% |
2.6% |
-1.4 pt |
2.4% |
2.6% |
-0.2 pt |
Operating cash flow before WCR and restructuring cash out
(€m) |
406 |
326 |
+80 |
1,441 |
1,315 |
+126 |
Operating cash flow (before WCR and
restructuring) margin |
10.6% |
8.2% |
+2.3 pt |
9.3% |
8.2% |
+1.2 pt |
* Reclassification of
Servair as a discontinued operation
KLM
|
Q4 2016 |
Q4 2015* |
Change |
FY 2016 |
FY 2015* |
Change |
Revenue (€m) |
2,370 |
2,378 |
-0.3% |
9,800 |
9,905 |
-1.1% |
EBITDA (€m) |
177 |
169 |
+8 |
1,189 |
911 |
+278 |
Operating result (€m) |
52 |
39 |
+13 |
681 |
384 |
+297 |
Operating margin |
2.2% |
1.6% |
+0.6 pt |
6.9% |
3.9% |
+3.0 pt |
Operating cash flow before WCR and restructuring cash out
(€m) |
166 |
129 |
+37 |
1,054 |
746 |
+308 |
Operating cash flow (before WCR and
restructuring) margin |
7.0% |
5.4% |
+1.6 pt |
10.8% |
7.5% |
+3.2 pt |
NB: Sum of individual airline
results does not add up to Air France-KLM total due to intercompany
eliminations at Group level.
.
GROUP FLEET AT 31 DECEMBER 2016
Aircraft type |
AF
(incl. HOP!) |
KL
(incl. KLC & Martinair) |
Transavia |
Owned |
Finance
lease |
Operating
lease |
Total |
In
operation |
Change
/ 31/12/15 |
B747-400 |
|
18 |
|
18 |
|
|
18 |
17 |
-8 |
B777-300 |
43 |
12 |
|
9 |
25 |
21 |
55 |
55 |
5 |
B777-200 |
25 |
15 |
|
19 |
10 |
11 |
40 |
40 |
|
B787-9 |
1 |
8 |
|
|
1 |
8 |
9 |
8 |
6 |
A380-800 |
10 |
|
|
1 |
4 |
5 |
10 |
10 |
|
A340-300 |
12 |
|
|
5 |
5 |
2 |
12 |
10 |
-2 |
A330-300 |
|
5 |
|
|
|
5 |
5 |
5 |
|
A330-200 |
15 |
8 |
|
4 |
7 |
12 |
23 |
23 |
-2 |
Total Long-Haul |
106 |
66 |
0 |
56 |
52 |
64 |
172 |
168 |
-1 |
B737-900 |
|
5 |
|
1 |
1 |
3 |
5 |
5 |
|
B737-800 |
|
25 |
55 |
12 |
9 |
59 |
80 |
80 |
10 |
B737-700 |
|
18 |
8 |
3 |
8 |
15 |
26 |
26 |
|
A321 |
20 |
|
|
10 |
1 |
9 |
20 |
20 |
|
A320 |
43 |
|
|
5 |
3 |
35 |
43 |
41 |
-2 |
A319 |
38 |
|
|
19 |
6 |
13 |
38 |
38 |
|
A318 |
18 |
|
|
11 |
7 |
|
18 |
18 |
3 |
Total Short and Medium-Haul |
119 |
48 |
63 |
61 |
35 |
134 |
230 |
228 |
11 |
ATR72-600 |
5 |
|
|
|
|
5 |
5 |
5 |
|
ATR72-500 |
5 |
|
|
2 |
2 |
1 |
5 |
5 |
-1 |
ATR42-500 |
12 |
|
|
5 |
3 |
4 |
12 |
12 |
-1 |
Canadair
Jet 1000 |
14 |
|
|
14 |
|
|
14 |
14 |
|
Canadair
Jet 700 |
11 |
|
|
11 |
|
|
11 |
11 |
-2 |
Canadair
Jet 100 |
1 |
|
|
1 |
|
|
1 |
|
|
Embraer
190 |
10 |
30 |
|
4 |
15 |
21 |
40 |
40 |
|
Embraer
175 |
|
4 |
|
|
4 |
|
4 |
4 |
4 |
Embraer
170 |
15 |
|
|
8 |
2 |
5 |
15 |
15 |
-1 |
Embraer
145 |
18 |
|
|
13 |
5 |
|
18 |
15 |
-1 |
Embraer
135 |
4 |
|
|
4 |
|
|
4 |
|
|
Fokker
70 |
|
13 |
|
13 |
|
|
13 |
11 |
-5 |
Total Regional |
95 |
47 |
0 |
75 |
31 |
36 |
142 |
132 |
-7 |
B747-400ERF |
|
3 |
|
3 |
|
|
3 |
3 |
|
B747-400BCF |
|
3 |
|
2 |
|
1 |
3 |
1 |
|
B777-F |
2 |
|
|
2 |
|
|
2 |
2 |
|
MD-11 |
|
|
|
|
|
|
|
|
-3 |
Total Cargo |
2 |
6 |
0 |
7 |
0 |
1 |
8 |
6 |
-3 |
|
|
|
|
|
|
|
|
|
|
Air France-KLM Group |
322 |
167 |
63 |
199 |
118 |
235 |
552 |
534 |
|
[1] 2017
average Brent price of USD 56, average jet fuel market price of USD
535 per ton, average exchange rate of USD 1.07 per euro
[2] 2018
average Brent price of USD 56, average jet fuel market price of USD
555 per ton, average exchange rate of USD 1.07 per euro
AIR FRANCE-KLM: 2016
RESULTS
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: AIR FRANCE - KLM via Globenewswire
Air FranceKLM (EU:AF)
Historical Stock Chart
From Mar 2024 to Apr 2024
Air FranceKLM (EU:AF)
Historical Stock Chart
From Apr 2023 to Apr 2024