Air France-KLM Group’s Q2 2023 Results

A KLM aircraft at the terminal.
Photo Credit: KLM Royal Dutch Airlines
By Jamie Clarke 3 Min Read
3 Min Read

The Air France-KLM Group has published its second quarter (Q2) 2023 results this week, showing a strong operating margin.

This article will cover the details surrounding Air France-KLM Group’s Q2 2023 results and their onward plans.

Air France-KLM Group’s Q2 2023 Results

The new Air France Airbus A350 at the terminal.
Photo Credit: Air France

Starting things off for the group, they have achieved an operating result of €0.7 billion with an operating margin of 9.6%. The group also achieved revenues of €7.6 billion, which is a €0.9 billion improvement compared to Q2 2022.

Alongside this, the Air France-KLM Group has a positive adjusted operating free cash flow at €0.6 billion with cash at hand at €10 billion. Their net debt is also down by €1.4 billion since the end of 2022 with a net debt/EBITDA ratio of 1.2x.

In terms of passenger capacity, Air France-KLM Group now sits at 92% capacity compared to 2019 (pre-pandemic) with an average load factor of 88%.

During Q2 2023, the group carried a total of nearly 24.7 million passengers, an 8.2% increase compared to Q2 2022 bringing their 2023 year-to-date figure of passengers carried to just over 44.3 million.

In terms of its fleet, the Air France-KLM Group since the end of 2022 has added three Boeing 787-10 Dreamliners (KLM), 15 Boeing 737-800s (Transavia), nine Airbus A220-300s (Air France), and two Embraer E195-E2s (KLM). Whilst simultaneously three Boeing 737-700s (KLM), two Airbus A321s (Air France), four Airbus A319s (Air France) and two CRJ-1000s (Air France HOP!) left the fleet.

Executive Comments

Air France-KLM Group Chief Executive Officer, Mr Benjamin Smith, has commented on the group’s successful Q2 2023, saying, “We have again delivered a strong set of results during the Second Quarter of 2023. In spite of the inflationary context, we posted double-digit growth in our revenues and a record operating margin. The rollout of new award-winning products across our airlines continued unabated, which serves as a testament of the commitment of our employees, whom I would like to thank.”

“We were also busy throughout the quarter, actively preparing for the summer. I am very glad to see that the situation at airports is much better, including at KLM’s hub at Amsterdam Schiphol Airport. This season notably serves as a test run for 2024, when France will host the Olympic and Paralympic Games, of which Air France is an official partner. Lastly, we have also continued delivering on our strategic roadmap, and secured ambitious partnerships in the field of sustainability, preparing for our medium to long-term future.”

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