30 October 2020 THIRD QUARTER 2020 Increase of demand until mid-August, then new governmental restrictions impacted the expected level of demand recovery The continuation of the Covid-19 crisis severely impacted the Third quarter 2020 results: Revenue at 2,524 million euros, down 67% compared to last yearEBITDA loss at -442 million euros, limited thanks to cost control and state aidOperating result at –1,046 million euros, down 1,955 million euros compared to last yearNet income at -1,665 million euros, including restructuring provision at -565 million euros, Covid-19 related over-hedging at -39 million euros and fleet impairment at -31 million eurosNet debt at 9,308 million euros, up 3,161 million compared to end of 2019At 30 September 2020, the Group has 12.4 billion euros of liquidity or credit lines at disposal Air France and KLM have agreed with labour representatives on substantial restructuring plans and submitted them for final validation to the French and Dutch states. OUTLOOKAir France-KLM Group continues to implement the highest safety standards for its customers and employees to counter virus transmission risks. After the lockdown, the Group observed a positive demand recovery trend until mid-August. Then, the negative trend reversal for the Passenger activity led the airlines of the Group to adjust downwards the capacity planned for the fall and winter period. There is limited visibility on the demand recovery curve as customer booking behavior is much more short-term oriented and also highly dependent on the imposed travel restrictions, especially on the Long Haul network. The period of lockdown starting today in France is a new difficulty that will weigh on the Group's activities.In this context the Group expects: Capacity in Available Seat kilometers circa index 45 for KLM and inferior to index 35 for Air France in the Fourth quarter 2020 compared to 2019 for the Network passenger activityNegative load factor developments for the Fourth quarter 2020, particularly on the long-haul network, and negative yield mix effects due to a delayed recovery in business traffic The Group anticipates a challenging fourth quarter 2020, with a substantial lower EBITDA compared to Q3 2020. Air France-KLM GroupThird quarterNine months2020Change2020 ChangePassengers (thousands)8,796-69.8%28,124-64.7%Passenger Unit revenue per ASK1 (€ cts) 4.01-42.7%5.05-24.5%Operating result (€m)-1,046-1,955-3,414-4,460Net income – Group part (€m)-1,665-2,026-6,078-6,213Adj. operating free cash flow (€m)-1,220-985-3,547-3,663Net debt at end of period (€m) 9,3083,161 The Board of Directors of Air France-KLM, chaired by Anne-Marie Couderc, met on 29 October 2020 to approve the financial statements for the nine months 2020. Group CEO Mr. Benjamin Smith said: “After a promising recovery during the summer, the gradual closure of international borders in the second half of August and the resurgence of the pandemic strongly impacted our results in the Third Quarter, with the Group reporting an operating loss of 1.0 billion euros. We have accelerated the implementation of cost reduction and cash preservation measures. We are also working closely with our partners on various means, such as rapid detection tests, that would allow traffic within the best sanitary conditions for our customers and employees. Beyond these immediate necessary measures, we are engaged in a more profound transformation of our Group, with the objective of exiting this crisis in a stronger position, ready to address the future challenges of our industry. Air transport will continue to connect people and cultures, but we foresee changes in customers’ expectations that we anticipate too.We expect a challenging Fourth quarter 2020, with current forward booking sharply down compared to last year.” Business review Network: With active management of capacity to meet the increasing demand, the Group was able to ramp up capacity with incremental cash positive flights NetworkThird quarterNine months2020ChangeChange constant currency2020ChangeChange constant currencyTotal revenues (€m)2,004-68.6%-68.3%7,220-58.8%-58.8%Scheduled revenues (€m)1,856-69.8%-69.4%6,753-59.7%-59.7%Operating result (€m)-990-1,649-1,631-2,842-3,555-3,564 Third quarter 2020 revenues decreased by 68.3% at constant currency to 2,004 million euros. The operating result amounted to -990 million euros, a -1,631 million euros decrease at constant currency compared to last year. Measures were strengthened to preserve cash, including reduction of investments, cost savings measures, deferral of supplier payments and partial activity for employees. Passenger network: Long-haul suffering from travel restrictions, ability to capture traffic when border controls are less restrictive Third quarterNine monthsPassenger network2020ChangeChange constant currency2020ChangeChange constant currencyPassengers (thousands)6,782-71.3% 23,671-64.3% Capacity (ASK m)32,100-59.6% 103,268-54.1% Traffic (RPK m) 13,752-80.7% 66,861-66.3% Load factor 42.8%-46.9 pt 64.7%-23.5 pt Total passenger revenues (€m)1,329-77.4%-77.1%5,512-65.4%-65.4%Scheduled passenger revenues (€m)1,265-77.9%-77.6%5,271-65.7%-65.7%Unit revenue per ASK (€ cts) 3.94-45.2%-44.5%5.10-25.4%-25.3% The passenger network activity was, as anticipated strongly reduced, at around 40% of last year’s levels. The tightening of travel restrictions, border closures and absence of corporate travel delayed the expected traffic recovery. July and August were relatively strong in term of traffic compared to a disappointing September affected by restrictive travel measures. For the third quarter, the unit revenues were down at -44.5% at constant currency compared to last year primarily due to load factors decline on Long Haul operations. The Group’s strategy was to only operate incremental cash positive flight and several routes were taking advantage of the strong worldwide cargo demand while having few passenger on board. The visiting friend and relative demand was driving the summer traffic, with the French Domestic, African & Middle East and Caribbean & Indian Ocean as the more resilient with a unit revenue performance between -22% and -27% at constant currency. The medium-haul performance was mixed during summer, with some leisure destinations such as Italy, Spain, Portugal and Greece benefiting from easing travel restrictions and other strongly affected by quarantine and testing process like UK or Germany. North Atlantic, South American and Asian networks continued to be strongly affected by the border restrictions in place with an important decline in capacity and passenger traffic during summer. Cargo: Continued strong performance of cargo due to the gap between industry capacity and demand Third quarterNine monthsCargo business2020ChangeChange constant currency2020ChangeChange constant currencyTons (thousands)220-20.0% 611-25.7% Capacity (ATK m)2,537-33.3% 7,309-32.9% Traffic (RTK m) 1,735-17.0% 4,747-24.2% Load factor 68.4%+13.4 pt 65.0%+7.5 pt Total Cargo revenues (€m)676+31.7%+34.1%1,708+7.1%+6.9%Scheduled cargo revenues (€m)592+35.7%+38.0%1,482+8.7%+8.4%Unit revenue per ATK (€ cts ) 23.35+104.0%+107.6%20.28+62.0%+61.6% Global air cargo capacity is at the end of the Third quarter 2020 approximately 15% lower than 2019. Tightening of supply and demand levels increased yields by significant amount over the past months. September was the fifth consecutive month of gradual air cargo market improvements and Air France-KLM’s Cargo activity continued to strongly perform with a unit revenue at constant currency up 104.0% in the Third quarter 2020. The Cargo capacity of the Group has been down 33.3%, primarily driven by the reduction in belly capacity of passenger aircraft partly offset by the increase of the full freighters’ capacity and mini cargo flights (passenger aircraft with only belly capacity commercialized). The load factors were strongly up 13.4 points for the quarter. On the demand side, world-wide air freight volumes are down due to Covid-19 crisis but are expected to rebound to 90 to 95% of pre Covid-19 levels in 2021. The supply-demand gap of the past months is foreseen to narrow as industry capacity supply will increase and will depend on the passenger traffic recovery. Air France-KLM is in preparation to transport the future Covid-19 vaccines. Transavia operating loss in the Third quarter at -13 million euros, impacted by border restrictions reinstatement Third quarterNine monthsTransavia2020Change2020ChangePassengers (thousands)2,014-63.3%4,453-66.6%Capacity (ASK m)6,009-44.7%11,178-57.4%Traffic (RPK m) 3,869-61.8%8,505-64.9%Load factor 64.4%-28.7 pt76.1%-16.4 ptTotal passenger revenues (€m)262-60.6%521-62.9%Unit revenue per ASK (€ cts) 4.38-30.2%4.55-16.3%Unit cost per ASK (€ cts)4.61-1.3%6.39+32.5%Operating result (€m)-13-189-206-364 The Third quarter operating result ended 189 million euros lower compared to last year at an operational loss of -13 million euros, as a result of the Covid-19 crisis. Activity levels were close to 55% of last year’s level, with an unit revenue down -30,2% compared to the Third quarter 2019. Transavia France and Holland were able to capture traffic and fill their planes with reasonable load factors and good yields on several leisure destinations. Spain, Greece, Portugal and Italy routes were the most resilient during the quarter. However, severe travel restrictions from the Netherlands to Spain and Greece in the course of the third quarter, did put pressure on activity levels and loadfactor. Transavia France will expend its French Domestic operation starting in November 2020 from Paris Orly and provinces airports.However, the resurgence of Covid-19 and border restrictions have slowed down Transavia in the traffic recovery. Strict cash preservation measures are still in place including reduction of investments, cost savings measures, deferral of supplier payments and partial activity measures. Maintenance business operating result for Third quarter 2020 at -46 million euros, impacted by Covid-19 Third quarterNine monthsMaintenance2020ChangeChange constant currency2020ChangeChange constant currencyTotal revenues (€m)616-47.1% 2,255-34.7% Third-party revenues (€m)247-54.5%-53.1%963-40.7%-41.6%Operating result (€m)-46-117-111-366-536-542Operating margin (%)-7.4%-13.5 pt-13.1 pt-16.2%-21.2 pt-21.3 pt The Third quarter operating result stood at -46 million euros, a decrease of 117 million euros, highly impacted by the Covid-19 crisis. Revenues declined and were also impacted by the Air France-KLM Group airlines decrease in activity. During the Third quarter, contracts signature have restarted and will be included in the order book before year end. The Maintenance business is carefully managing agreements with clients on payment terms. Operating costs have been reduced in the Third quarter 2020 by a reduced maintenance activity level, partial activity pay schemes for employees and other initiated cost savings measures. The Maintenance order book is assessed to 9.3 billion dollars at 30 September 2020 a decrease of 2.2 billion dollars compared to 31 December 2019, explained by the Covid-19 crisis effects already occurring and expected. Air France-KLM Group: Decline of 5 billion euros in revenues and 2 billion euros in EBITDA during the third quarter Third quarterNine months 2020ChangeChange constant currency2020ChangeChange constant currencyCapacity (ASK m)38,109-57.8% 114,446-54.4% Traffic (RPK m)17,621-78.4% 75,367-66.2% Passenger unit revenue per ASK (€ cts) 4.01-43.4%-42.7%5.05-24.6%-24.5%Group unit revenue per ASK (€ cts) 5.56-26.5%-25.6%6.34-12.3%-12.3%Group unit cost per ASK (€ cts) at constant fuel8.31+26.7%+38.2%9.33+36.7%+40.4%Revenues (€m)2,524-66.8%-66.4%8,725-57.6%-57.7%EBITDA (€m)-442-2,095-2,071-1,282-4,545-4,554Operating result (€m) -1,046-1,955-1,931-3,414-4,460-4,470Operating margin (%)-41.4%-53.4 pt-53.2 pt-39.1%-44.2 pt-44.2 ptNet income - Group part (€m)-1,665-2,027 -6,078-6,213 2019 results restated for LLP componentization accounting change and EU passenger compensation reclassification between revenues and external expenses In the Third quarter 2020, the Air France-KLM Group posted an operating result of -1,046 million euros, down by 1,955 million euros compared to last year. Net income amounted to -1,665 million euros in the Third quarter 2020, a decrease of 2,027 million euros compared to last year, of which exceptional accounting items due to Covid-19: Restructuring costs provision of-565 million euros with Departure Plan of French Ground staff, contractual termination for Air France flight attendants, complement for contractual termination for Air France pilots, Departure Plan for Air France-KLM International Commercial staff and Departure Plan for HOP!Q4 2020 and Q1 2021 fuel over hedge has been recycled to “Other financial income and expenses” for -39 million eurosFleet impairment on Airbus A380 and the Canadair Jet of HOP! At -31 million euros Currencies had a negative 92 million euro impact on revenues and a positive 67 million euro effect on costs including currency hedging in the Third quarter of 2020. Since the beginning of the crisis, Air France, KLM and Transavia proceeded 1.8 billion euros of refunds including 300 million euros of voucher issued. The Third quarter 2020 unit cost increased by 26.7%, primarily caused by Covid-19 related capacity reductions Group net employee costs were down 36% in the Third quarter 2020 compared to last year, supported by partial activity implementation at Air France and KLM, release of temporary and hired staff and no profit sharing provisions to be made at both airlines. The average number of FTEs (Full Time Equivalent) in the Third quarter 2020 decreased by 5,500 compared to the Third quarter 2019, including 2,500 temporary contracts. Net debt up 3.2 billion euros Third quarterNine monthsIn € million2020Change2020ChangeCash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m)-594-2,115-1,926-4,950Cash out related to Voluntary Departure Plans (€m)-137-115-152-119Change in Working Capital Requirement (WCR) (€m)124+831666+582Net cash flow from operating activities (€m)-609-1,399-1,412-4,487Net investments* (€m)-362+418-1,473+738Operating free cash flow (€m)-970-981-2,885-3,749Repayment of lease debt-251-5-662+86Adjusted operating free cash flow**-1,220-985-3,547-3,663 * Sum of ‘Purchase of property, plant and equipment and intangible assets’ and ‘Proceeds on disposal of property, plant and equipment and intangible assets’ as presented in the consolidated cash flow statement. ** The “Adjusted operating free cash flow” is operating free cash flow after deducting the repayment of lease debt. The Group generated adjusted operating free cash flow in the Third quarter 2020 of -1,220 million euros, a decrease of 985 million euros compared to last year, mainly explained by an operating cash flow decline of 1,399 million euros, partly offset by a reduction in net investments of 418 million euros. Postponement of social charges, taxes and negotiation with suppliers compensated the refunds process and the low inflow of bookings and generated an improvement of +582 million euros in Change in Working Capital Requirement compared to last year. In € million30 Sep 202031 Dec 2019Net debt 9,3086 147EBITDA trailing 12 months-4174 128Net debt/EBITDA trailing 12 months-22.3 x1,5 x Both airlines results negatively impacted in the Third quarter 2020 Third quarterNine months 2020Change2020ChangeAir France Group Operating result (€m)-807-1,200-2,401-2,699Operating margin (%)-54.1%-62.6 pt-47.4%-49.8 ptKLM Group Operating result (€m)-234-745-1,002-1,736Operating margin (%)-20.5%-36.8 pt-25.2%-33.9 pt OUTLOOK Air France-KLM Group continues to implement highest safety standards for customers and employees to counter virus transmission risks. After the lockdown, the Group observed a promising demand recovery trend until mid-August. Then, the negative trend reversal for the Passenger activity led the airlines of the Group to adjust downwards the capacity planned for the fall and winter period. There is limited visibility on the demand recovery curve as customer booking behavior is much more short-term oriented than before the Covid-19 crisis and also highly dependent of the imposed travel restrictions, especially on the Long Haul network. The period of lockdown starting today in France is a new difficulty that will weigh on the Group's activities.In this context the Group expects: Capacity in Available Seat kilometers circa index 45 for KLM and inferior to index 35 for Air France in the Fourth quarter 2020 compared to 2019 for the Network passenger activityNegative load factor developments for the Fourth quarter 2020, particularly on long-haul network, and negative yield mix effects due to a delayed recovery in business The Full year 2020 Network passenger activity will be inferior to index 50 compared to 2019, due to the Covid-19 crisis. The Group anticipates a challenging fourth quarter 2020, with a substantial lower EBITDA compared to Q3 2020. At 30 September 2020, the Group has 12.4 billion euros of liquidity or credit lines at disposal. The Group foresees important liquidity requirements in the Fourth quarter 2020 with: Negative Fourth quarter working capital requirement influenced by deferred payments and substantial lower level of new bookings compared to Q4 2019.Capex spending at 0.6 billion euros, of which half is fleet Capex fully financed. The Group has reduced to 2.1 billion euros his 2020 capex guidance. This is a reduction of -1.5 billion euros compared to the initial 2020 guidance of 3.6 billion euros.The hybrid bond was repaid in October for 0.4 billion euros. AIR FRANCE AND KLM HAVE AGREED ON SUSBTANTIAL RESTRUCTURING PLAN WITH LABOUR REPRESENTATIVES The Group’s strategic orientations defined during the 2019 Investor day started to deliver results in 2019 and in early 2020. However, the Covid-19 which began in the first quarter of 2020 around the world is having an unprecedented impact on the industry and the Group has immediately reacted with safety, operational and cash protection measures. The focus on reducing external expenses and the number of employees were one of the top priorities. Futhermore, the French and the Dutch governments have provided financial packages and the partial activity implemented in France and the “NOW” mechanism in Holland allowed the Group to further reduce labor costs. To weather the crisis and cope with the new reality, Air France-KLM Group is accelerating its transformation plans and presented a substantial restructuring plan around the competitiveness and sustainability pillars. Negotiations with the trade unions have resulted in several agreements in Air France and KLM. To better align the fleet with the lower passenger demand, Air France-KLM Group has accelerated the phase-out of the Airbus 380, Airbus 340, Boeing 747, Canadair Jet and Embraer 145 aircraft. These decisions will bring forward cost savings and efficiency gains due to operating fewer aircraft types. The Group does not anticipate to return to the pre-crisis levels of global demand before several years and the short-term recovery expected has been delayed with the resurgence of Covid-19 end of summer. KLM business model is still both valid and valuable but needs to be reshaped to the new reality. KLM will be smaller, cheaper, more frugal, more agile and more sustainable.Operating costs will structurally being reduced in 2021 and beyond, with 750 million euros benefits in 2021 coming from labour, fleet, procurements and fuel costs decrease. KLM's restructuring plan calls for a reduction of 5,000 FTEs end of 2020. The plan submitted to Dutch Government early October complies with state aid conditions. Air France will enlarge and accelerate its restructuring plan to build a post-crisis successful model on several pillars to restructure the French domestic, optimize external spendings, transform support functions, adapt the opeartions to the new activity, modernize the fleet and regain commercial success. This will bring 800 million euros structural benefits by 2021 and 1.2 billion euros in total by 2022. Air France’s restructuring plan calls for a reduction of 4,000 FTEs end of 2020 and a total of 8,500 FTEs by 2022. The plan submitted to French Government complies with state aid conditions. The long term partial activity establishement is under discussion with representative unions. ****** The results presentation is available at www.airfranceklm.com on 30 October 2020 from 7:15 am CET. A conference call hosted by Mr. Smith (CEO) and Mr. Gagey (CFO) will be held on 30 October 2020 at 08.30 CET. To connect to the conference call, please dial: France: Local +33 (0)1 70 72 25 50Netherlands: Local +31 (0) 20 703 8211UK: Local +44 (0)330 336 9125US: Local +1 720 543 0214 Confirmation code: 9700330 To listen to the audio-replay of the conference call, please dial: France: Local +33 (0) 1 70 48 00 94Netherlands: Local +31 (0) 20 721 8903UK: Local +44 (0)207 660 0134US: Local +1 719-457-0820 Confirmation code: 9700330 Investor Relations PressOlivier Gall Wouter van Beek +33 1 49 89 52 59 +33 1 49 89 52 60 +33 1 41 56 56 email@example.com Wouter-van.Beek@airfranceklm.com Income Statement Third quarterNine months€m20202019Change20202019ChangeSales2,5247,609-66.8%8,72520,572-57.6%Other revenues00nm00nmRevenues2,5247,609-66.8%8,72520,572-57.6%Aircraft fuel-489-1,513-67.7%-1,886-4,118-54.2%Chartering costs-68-138-50.7%-181-407-55.5%Landing fees and en route charges-266-531-49.9%-743-1,471-49.5%Catering-58-221-73.8%-236-617-61.8%Handling charges and other operating costs-204-453-55.0%-646-1,294-50.1%Aircraft maintenance costs-331-624-47.0%-1,243-1,920-35.3%Commercial and distribution costs-61-266-77.1%-291-783-62.8%Other external expenses -263-419-37.2%-937-1,292-27.5%Salaries and related costs-1,293-2,011-35.7%-4,224-6,031-30.0%Taxes other than income taxes-28-27+3.7%-108-119-10.0%Other income and expenses95247-61.5%488742-34.3%EBITDA-4421,653nm-1,2823,263nmAmortization, depreciation and provisions-604-744-18.8%-2,132-2,217-3.8%Income from current operations-1,046909nm-3,4141,046nmSales of aircraft equipment81+700.0%3124+29.2%Other non-current income and expenses-597-103+479.9%-1,452-133+992%Income from operating activities-1,635807nm-4,835937nmCost of financial debt-136-111+22.5%-350-332+5.4%Income from cash and cash equivalent514-64.3%1840-55.0%Net cost of financial debt-131-97+35.1%-332-292+13.7%Other financial income and expenses111-259nm-621-391+58.8%Income before tax-1,655451nm-5,788254nmIncome taxes12-94nm-242-131+84.7%Net income of consolidated companies-1,643356nm-6,030123nmShare of profits (losses) of associates-226nm-5214nmNet income for the period-1,665363nm-6,082137nmMinority interest01nm-42nmNet income for the period – Group part-1,665362nm-6,078135nm 2019 results restated (with a similar impact in both years) for limited life parts componentization accounting change. Consolidated Balance Sheet Assets30 Sep 202031 Dec 2019€mGoodwill216217Intangible assets1,2531,305Flight equipment11,00911,334Other property, plant and equipment1,5351,580Right-of-use assets4,7895,173Investments in equity associates224307Pension assets96420Other financial assets1,0041,096Deferred tax assets271523Other non-current assets176241Total non-current assets20,57322,196Other short-term financial assets443800Inventories561737Trade receivables1,2082,164Other current assets8831,123Cash and cash equivalents5,9173,715Total current assets9,0128,539Total assets29,58530,735Liabilities and equity30 Sep 202031 Dec 2019In million eurosIssued capital429429Additional paid-in capital4,1394,139Treasury shares-67-67Perpetual0403Reserves and retained earnings-9,183-2,620Equity attributable to equity holders of Air France-KLM-4,6822,284Non-controlling interests915Total Equity-4,6732,299Pension provisions2,1232,253Return obligation liability and other provisions3,7123,750Financial debt10,8146,271Lease debt2,6343,149Deferred tax liabilities5142Other non-current liabilities532222Total non-current liabilities19,82015,787Return obligation liability and other provisions1,573714Current portion of financial debt2,179842Current portion of lease debt961971Trade payables1,5552,379Deferred revenue on ticket sales2,7943,289Frequent flyer program913848Other current liabilities4,4623,602Bank overdrafts14Total current liabilities14,43812,649Total equity and liabilities29,58530,735 Statement of Consolidated Cash Flows from 1st Jan until 30 Sept 2020 €m30 Sep 202030 Sep 2019Net income from continuing operations-6,082137Amortization, depreciation and operating provisions2,1322,217Financial provisions135162Loss (gain) on disposals of tangible and intangible assets-43-34Loss (gain)on disposals of subsidiaries and associates10Derivatives – non monetary result7015Unrealized foreign exchange gains and losses, net-83223Impairment6700Other non-monetary items761218Share of (profits) losses of associates52-14Deferred taxes30967Financial Capacity-2,0782,991(Increase) / decrease in inventories134-83(Increase) / decrease in trade receivables823-147Increase / (decrease) in trade payables-79241Increase / (decrease) in advanced ticket sales-435327Change in other receivables and payables936-54Change in working capital requirements66684Net cash flow from operating activities-1,4123,075Purchase of property, plant and equipment and intangible assets-1,654-2,295Proceeds on disposal of property, plant and equipment and intangible assets18184Proceeds on disposal of subsidiaries, of shares in non-controlled entities3578Acquisition of subsidiaries, of shares in non-controlled entities-1-1Dividends received010Decrease (increase) in net investments, more than 3 months-9-9Net cash flow used in investing activities-1,126-2,203Increase of equity due to new convertible bond054Perpetual (including premium)00Issuance of debt7,598904Repayment on financial debt-2,202-560Payments on lease debt-662-748Decrease (increase ) in loans, net48-17Dividends and coupons on perpetual paid0-1Net cash flow from financing activities4,782-368Effect of exchange rate on cash and cash equivalents and bank overdrafts-399Change in cash and cash equivalents and bank overdrafts2,205513Cash and cash equivalents and bank overdrafts at beginning of period3,7113,580Cash and cash equivalents and bank overdrafts at end of period5,9164,093Change in treasury of discontinued operations00 Key Performance Indicators Restated net result, group share Third quarterNine monthsIn million euros2020201920202019Net income/(loss), Group share -1,665361-6,078135Unrealized foreign exchange gains and losses, net-152167-78223Change in fair value of financial assets and liabilities (derivatives) -1541170-9Non-current income and expenses 5911021,421109Tax impact on gross adjustments net result -840-401-13Restated net income/(loss), group part-1,464642-5,066445Coupons on perpetual0-40-12Restated net income/(loss), group share including coupons on perpetual (used to calculate earnings per share)-1,464638-5,066433Restated net income/(loss) per share (in €)-3.421.49-11.851.01 Return on capital employed (ROCE)1 In million euros30 Sep 202030 June 202031 Mar 202031 Dec 201930 Sep 201930 June 201931 Mar 201931 Dec 2018Goodwill and intangible assets1,4701,5001,5641,5221,4811,4651,4851,411Flight equipment11,00910,91911,46511,33410,82910,74710,45610,308Other property, plant and equipment1,5351,5511,5791,5801,5541,5301,5041,503Right of use assets4,7894,9385,1195,1735,3005,4705,4535,664Investments in equity associates224267299307310305306311Financial assets excluding marketable securities and financial deposits135133142140131125127125Provisions, excluding pension, cargo litigation and restructuring-4,001-4,130-4,190-4,058-4,101-3,888-3,907-3,760WCR, excluding market value of derivatives-6,894-6,779-6,650-6,310-6,285-6,957-6,938-6,133Capital employed 8,2678,3999,3289,6889,2198,7978,4869,429Average capital employed (A)8,9218,983Adjusted results from current operations-3,3201,099- Dividends received-1-2- Share of profits (losses) of associates-4423- Normative income tax1,045-305Adjusted result from current operations after tax (B)-2,320815ROCE, trailing 12 months (B/A)-26.0%9.1% Net debt Balance sheet at€m30 Sep 202031 Dec 2019Financial debt12,7686,886Lease debt3,5114,029Currency hedge on financial debt94Accrued interest-108-62Gross financial debt (A)16,18010,857Cash and cash equivalents5,9173,715Marketable securities109111Cash securities309300Deposits (bonds)535585Bank overdrafts-1-4Others33Net cash (B)6,8724,710Net debt (A) – (B)9,3086,147 Adjusted operating free cash flow Third quarterNine months€m2020201920202019Net cash flow from operating activities, continued operations-609792-1,4123,075Investment in property, plant, equipment and intangible assets-370-788-1,654-2,295Proceeds on disposal of property, plant, equipment and intangible assets 9818184Operating free cash flow-97012-2,885864Payments on lease debt-251-246-662-748Adjusted operating free cash flow-1,220-234-3,547116 Operating cash burn Third quarterNine months 2020201920202019EBITDA-4421,653-1,2823,263Provisions (CO2 and other)714-268Correction of spare parts inventory2-220Addition to pension provisions7868232201Reversal to pension provisions (cash-out)-47-49-142-145Payment linked with shares01-21Sales of tangible and intangible assets (excluding aeronauticals)-164048Income from operation activities - cash impact-4021,690-1,1773,376Restructuring costs-137-4-152-15Other non-current income and expenses02-12Cost of financial debt-118-107-318-319Financial income07221Realized foreign exchanges gain/loss29-2428-9Termination of trading hedges - cash-1770-4990Current income tax77-6267-64Other financial charges & expenses - cash1-2-25-6Other elements-3-2-25 Financial capacity-7321,499-2,0782,991 Unit cost: net cost per ASK Third quarterNine months 2020201920202019Revenues (in €m)2,5247,6098,72520,572Income/(loss) from current operations (in €m) -/-1,046-9093,414-1,046Total operating expense (in €m)3,5706,70012,13919,526Passenger network business – other revenues (in €m)-64-163-241-534Cargo network business – other revenues (in €m)-84-77-226-231Third-party revenues in the maintenance business (in €m)-247-543-963-1,623Transavia - other revenues (in €m)117-1316Third-party revenues of other businesses (in €m)-10-10-21-26Net cost (in €m)3,1665,92410,67517,128Capacity produced, reported in ASK*38,10990,317114,446251,110Net cost per ASK (in € cents per ASK)8.316.569.336.82Gross change 26.7% 36.7%Currency effect on net costs (in €m) 60 19Change at constant currency 25.4% 36.6%Capacity effect on net cost -3,393 -9,345Fuel price effect (in €m) -179 -162Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK)8.316.019.336.64Change at constant currency and fuel price basis +38.2% +40.4% * The capacity produced by the transportation activities is combined by adding the capacity of the Passenger network (in ASK) to that of Transavia (in ASK). Group resultsAir France Group Third quarterNine months 2020Change2020ChangeRevenue (in €m)1,492-67.5%5,066-59.6%EBITDA (in €m)-461-1,321-1,095-2,801Operating result (en m€)-807-1,200-2,401-2,699Operating margin (%)-54.1%-62.6 pt-47.4%-49.8 ptOperating cash flow before WCR and restructuring cash out (in €m)-608-1,421-1,519-3,129Operating cash flow (before WCR and restructuring) margin-40.7%-58.5 pt-30.0%-42.8 ptKLM Group Third quarterNine months 2020Change2020ChangeRevenue (in €m)1,144-63.5%3,984-52.5%EBITDA (in €m)25-763-176-1,713Operating result (en m€)-234-745-1,002-1,736Operating margin (%)-20.5%-36.8 pt-25.2%-33.9 ptOperating cash flow before WCR and restructuring cash out (in €m)13-671-355-1,736Operating cash flow (before WCR and restructuring) margin1.1%-20.7 pt-8.9%-25.4 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 30 Sept 2020 Aircraft typeAF (incl. HOP)KL (incl. KLC & MP)TransaviaOwnedFinance leaseOperating leaseTotalIn operationChange / 31/12/19B747-400 4 4 43-5B777-3004314 1817225757 B777-2002515 26 144040 B787-91013 741223231B787-10 5 32 551A380-8009 2349 -10A350-9006 15 663A340-3003 3 3 -4A330-300 5 555 A330-200158 11 122322-1Total Long-Haul111640753169175161-15B737-900 5 3 255 B737-800 31752910671061062B737-700 16735152323 A32120 11 92020 A32044 35364443 A31933 14 193333 A31818 8 101818 Total Medium-Haul115528271201582492482ATR72-600 -2ATR72-500 ATR42-500 Canadair Jet 100014 14 1414 Canadair Jet 70011 11 1110 Embraer 1901732 11102849481Embraer 175 17 314 1717 Embraer 17015 10 51515 Embraer 14515 15 15 -13Total Regional72490642433121104-14B747-400ERF 3 3 33 B747-400BCF 1 1 11 B777-F2 2 22 Total Cargo240600660 Total3001698221675260551519-27 THIRD QUARTER 2020 TRAFFIC Passenger network activity* Q3 Year to date Total Passenger network*20202019Variation 20202019VariationPassengers carried (‘000s)6,78223,631(71.3%) 23,67166,286(64.3%)Revenue pax-kilometers (m RPK)13,75271,323(80.7%) 66,861198,566(66.3%)Available seat-kilometers (m ASK)32,10079,457(59.6%) 103,267224,902(54.1%)Load factor (%)42.8%89.8%(46.9) 64.7%88.3%(23.5) Long-haul Passengers carried (‘000s)1,2197,660(84.1%) 7,07221,288(66.8%)Revenue pax-kilometers (m RPK)8,70557,382(84.8%) 52,783160,536(67.1%)Available seat-kilometers (m ASK)23,98763,392(62.2%) 82,837180,125(54.0%)Load factor (%)36.3%90.5%(54.2) 63.7%89.1%(25.4) North America Passengers carried (‘000s)2842,630(89.2%) 1,8706,686(72.0%)Revenue pax-kilometers (m RPK)2,06318,608(88.9%) 13,39747,494(71.8%)Available seat-kilometers (m ASK)7,59720,456(62.9%) 23,40953,116(55.9%)Load factor (%)27.2%91.0%(63.8) 57.2%89.4%(32.2) Latin America Passengers carried (‘000s)96934(89.7%) 9692,729(64.5%)Revenue pax-kilometers (m RPK)9428,900(89.4%) 9,17725,973(64.7%)Available seat-kilometers (m ASK)3,1779,800(67.6%) 13,52428,975(53.3%)Load factor (%)29.6%90.8%(61.2) 67.9%89.6%(21.8) Asia / Pacific Passengers carried (‘000s)1731,723(90.0%) 1,3614,969(72.6%)Revenue pax-kilometers (m RPK)1,52615,066(89.9%) 11,80343,399(72.8%)Available seat-kilometers (m ASK)6,03716,453(63.3%) 20,70247,734(56.6%)Load factor (%)25.3%91.6%(66.3) 57.0%90.9%(33.9) Africa / Middle East Passengers carried (‘000s)3281,453(77.4%) 1,5634,089(61.8%)Revenue pax-kilometers (m RPK)1,6748,164(79.5%) 8,82523,117(61.8%)Available seat-kilometers (m ASK)3,1889,284(65.7%) 12,33727,360(54.9%)Load factor (%)52.5%87.9%(35.4) 71.5%84.5%(13.0) Caribbean / Indian Ocean Passengers carried (‘000s)337919(63.3%) 1,3092,815(53.5%)Revenue pax-kilometers (m RPK)2,5006,645(62.4%) 9,58020,553(53.4%)Available seat-kilometers (m ASK)3,9887,398(46.1%) 12,86422,941(43.9%)Load factor (%)62.7%89.8%(27.1) 74.5%89.6%(15.1) Short and Medium-haul Passengers carried (‘000s)5,56315,972(65.2%) 16,60044,998(63.1%)Revenue pax-kilometers (m RPK)5,04713,941(63.8%) 14,07938,030(63.0%)Available seat-kilometers (m ASK)8,11316,066(49.5%) 20,43044,776(54.4%)Load factor (%)62.2%86.8%(24.6) 68.9%84.9%(16.0) * Air France and KLM Transavia activity Q3 Year to date Transavia20202019Variation 20202019VariationPassengers carried (‘000s)2,0145,492(63.3%) 4,45313,315(66.6%)Revenue pax-kilometers (m RPK)3,86910,117(61.8%) 8,50524,239(64.9%)Available seat-kilometers (m ASK)6,00910,874(44.7%) 11,17826,227(57.4%)Load factor (%)64.4%93.0%(28.7) 76.1%92.4%(16.3) Total group passenger activity** Q3 Year to date Total group**20202019Variation 20202019VariationPassengers carried (‘000s)8,79629,123(69.8%) 28,12479,601(64.7%)Revenue pax-kilometers (m RPK)17,62181,440(78.4%) 75,367222,805(66.2%)Available seat-kilometers (m ASK)38,10990,331(57.8%) 114,446251,129(54.4%)Load factor (%)46.2%90.2%(43.9) 65.9%88.7%(22.9) ** Air France, KLM and Transavia Cargo activity Q3 Year to dateTotal Group20202019Variation 20202019VariationRevenue tonne-km (m RTK)1,7352,091(17.0%) 4,7476,260(24.2%)Available tonne-km (m ATK)2,5373,804(33.3%) 7,30910,896(32.9%)Load factor (%)68.4%55.0%13.4 64.9%57.4%7.5 Air France activity Q3 Year to date Total Passenger network activity20202019Variation 20202019VariationPassengers carried (‘000s)4,48714,168(68.3%) 14,63539,844(63.3%)Revenue pax-kilometers (m RPK)8,53842,184(79.8%) 39,394116,449(66.2%)Available seat-kilometers (m ASK)16,58947,464(65.0%) 56,909133,309(57.3%)Load factor (%)51.5%88.9%(37.4) 69.2%87.4%(18.1)Long-haul Passengers carried (‘000s)7824,632(83.1%) 4,24312,723(66.7%)Revenue pax-kilometers (m RPK)5,24233,849(84.5%) 30,66993,664(67.3%)Available seat-kilometers (m ASK)11,52637,664(69.4%) 44,431105,944(58.1%)Load factor (%)45.5%89.9%(44.4) 69.0%88.4%(19.4)Short and Medium-haul Passengers carried (‘000s)3,7049,536(61.2%) 10,39327,121(61.7%)Revenue pax-kilometers (m RPK)3,2968,335(60.5%) 8,72522,785(61.7%)Available seat-kilometers (m ASK)5,0639,800(48.3%) 12,47727,365(54.4%)Load factor (%)65.1%85.1%(20.0) 69.9%83.3%(13.3) Q3 Year to dateCargo activity20202019Variation 20202019VariationRevenue tonne-km (m RTK)605927(34.7%) 1,8022,794(35.5%)Available tonne-km (m ATK)1,1391,946(41.4%) 3,3905,489(38.2%)Load factor (%)53.1%47.7%5.5 53.2%50.9%2.2 KLM activity Q3 Year to date Total Passenger network activity20202019Variation 20202019VariationPassengers carried (‘000s)2,2959,464(75.7%) 9,03626,442(65.8%)Revenue pax-kilometers (m RPK)5,21429,138(82.1%) 27,46882,117(66.6%)Available seat-kilometers (m ASK)15,51131,993(51.5%) 46,35991,593(49.4%)Load factor (%)33.6%91.1%(57.5) 59.3%89.7%(30.4)Long-haul Passengers carried (‘000s)4363,028(85.6%) 2,8298,566(67.0%)Revenue pax-kilometers (m RPK)3,46223,533(85.3%) 22,11466,871(66.9%)Available seat-kilometers (m ASK)12,46125,728(51.6%) 38,40674,182(48.2%)Load factor (%)27.8%91.5%(63.7) 57.6%90.1%(32.6)Short and Medium-haul Passengers carried (‘000s)1,8596,436(71.1%) 6,20717,876(65.3%)Revenue pax-kilometers (m RPK)1,7525,605(68.7%) 5,35315,246(64.9%)Available seat-kilometers (m ASK)3,0506,266(51.3%) 7,95317,411(54.3%)Load factor (%)57.4%89.5%(32.0) 67.3%87.6%(20.2) Q3 Year to dateCargo activity20202019Variation 20202019VariationRevenue tonne-km (m RTK)1,1271,164(3.2%) 2,9423,466(15.1%)Available tonne-km (m ATK)1,3981,858(24.8%) 3,9195,407(27.5%)Load factor (%)80.6%62.6%18.0 75.1%64.1%11.0 1 Passenger unit revenue is the aggregate of Passenger network and Transavia unit revenues, change at constant currency 1 The definition of ROCE has been revised to take into account the seasonal effects of the activity.
Q3_2020 Press release EN final