Duurzamer en stiller

De nieuwe Airbus A350 geldt als een aanzienlijke stap in het bereiken van een schonere en stillere vloot: het toestel heeft tot 40 procent minder geluid en 25 procent minder brandstofverbruik dan een vergelijkbaar oudere generatie vliegtuig. De romp van het vliegtuig bestaat grotendeels uit sterke, lichtgewicht materialen (composiet en titanium), waardoor het langere afstanden kan overbruggen met minder brandstof. Samen met het gebruik van Sustainable Aviation Fuel (SAF) en verdere operationele innovatie en efficiëntie, gaat deze aankoop een grote bijdrage leveren aan schoner, stiller en zuiniger vliegen. De Airbus A350 draagt verder bij aan de doelstellingen voor klantervaring, comfort en efficiency.

U kunt het persbericht van AF/KL vinden op de website van de Air France-KLM Groep.

Jean-Marc Janaillac zal de gevolgen en de persoonlijke consequenties die hij aan deze uitslag verbindt aanstaande week bespreken met de AFKL Board en de AF Board. Ik wacht deze af en draag graag, waar mogelijk, bij aan de stabiliteit en interne cohesie van de AFKL Groep. In deze tijden is interne steun en solidariteit van groot belang.

Het rapport dat EenVandaag in handen heeft, gaat om een onderzoek onder 50 managers van Air France en KLM, uitgevoerd in opdracht van de Frans-Nederlandse vakbonden, bevat daarmee het sentiment van zowel Franse als Nederlandse collega’s.

Gezien de discussies van de afgelopen jaren en maanden begrijpen we de verschillende sentimenten en kunnen we de geschetste situaties in het rapport plaatsen. Daar waar het beter moet, maar ook daar waar het wel goed gaat. We nemen deze sentimenten uiterst serieus.

De komende periode zullen we gezamenlijk met Air France en Air France-KLM bepalen hoe we hier lessen uit kunnen trekken en tot verbeteringen komen daar waar dat nodig is.

Volgens de planning zal de transactie voor de eerste drie toestellen in de komende weken worden afgewikkeld.

Achtergrondinformatie:

De Europese Investeringsbank (EIB) is de financiële instelling van de Europese Unie met als aandeelhouders de lidstaten van de Europese Unie die gezamenlijk het kapitaal onderschrijven. De taak van de EIB bestaat uit het op lange termijn financieren van investeringen waarmee de doelstellingen van het Europese beleid gestalte krijgen. Alleen al in 2016 verstrekte de Bank EUR 2,56 miljard aan leningen voor Nederlandse projecten in uiteenlopende sectoren, waaronder het MKB en de industrie-, transport- en landbouwsector.

Koninklijke Luchtvaart Maatschappij N.V. is de nationale luchtvaartmaatschappij van Nederland. KLM is gevestigd in Amstelveen en heeft het nabijgelegen Amsterdam Airport Schiphol als hub. KLM maakt deel uit van de AIR FRANCE–KLM Groep en is lid van de SkyTeam-luchtvaartalliantie. De Koninklijke Luchtvaart Maatschappij is in 1919 opgericht en daarmee de oudste, nog onder haar oorspronkelijke naam opererende, luchtvaartmaatschappij ter wereld. KLM voert passagiers- en vrachtvluchten uit naar 147 bestemmingen wereldwijd.

Crédit Agricole CIB is de Corporate & Investment Banking-tak van de Crédit Agricole Groep, de op tien na grootste bank ter wereld wat betreft kernkapitaal (Tier 1-kapitaal) (The Banker, juli 2016). De Bank biedt cliënten een uitgebreid pakket producten en diensten op het gebied van kapitaalmarkten, investment banking, structured finance en corporate banking, gestructureerd rond zes hoofddivisies: Client Coverage & International Network, International Trade & Transaction Banking, Global Investment Banking, Structured Finance, Global Markets en Debt Optimisation & Distribution. Dankzij zijn aanwezigheid in belangrijke landen in Europa, Amerika, Asia/Pacific, het Midden-Oosten en Noord-Afrika biedt de Bank ook ondersteuning aan cliënten op grote internationale markten. Ga voor meer informatie naar de website: www.ca-cib.com

Contactpersonen voor de media:

EIB: Tim Smit, +352 691 286423, t.smit@eib.org

KLM: Koen van Zijl, +31 620417895, koen-van.zijl@klm.com

Credit Agricole CIB: Louise Tingstrom +44 7899066995, louise.tingstrom@bladonmore.com

De totale boete voor de AFKL-groep op basis van het nieuwe EC-besluit bedraagt €325 miljoen. Het bedrag valt daarmee lager uit dan de eerder opgelegde sanctie uit 2010. Dat is vooral vanwege een verlaging van de boete voor Martinair om technische redenen. De maatregel van de Europese Commissie heeft mede betrekking op de periode voordat Air France en KLM één groep vormden. Het totaalbedrag voor de AFKL-groep is de som van de afzonderlijk opgelegde boetes aan Air France, KLM en Martinair.

Air France - KLM bestudeert momenteel het nieuwe besluit van de Europese Commissie en overweegt eventuele vervolgstappen. De Groep hield al sinds 2010 rekening met een dergelijk besluit en heeft het bedrag al volledig in haar financiële rapportages verwerkt.

KLM erkent het belang van strikte Europese mededingingsregels en een eerlijke markt voor luchtvaartmaatschappijen. KLM heeft altijd volledige medewerking en openheid van zaken gegeven gedurende het onderzoek.

• Revenues of 6.64 billion euros, up 3.0%, down 4.5% like-for-like[1]
• EBITDAR[2] of 824 million euros, a decrease of 30 million euros
• Operating result of 185 million euros, a decrease of 53 million euros,stable like-for-like
• Unit cost² down 0.5% like-for-like

FIRST HALF

• Revenues of 12.30 billion euros, up 2.4%, down 3.6% like-for-like
• EBITDAR of 1,053 million euros, an improvement of 32 million euros
• Strong operating free cash flow² generation: 274 million euros
• Further net debt reduction: net debt² of 4.55 billion euros, down 857 million euros compared to 31 December 2014
• Adjusted net debt / EBITDAR ratio[3] of 3.8x, an improvement of 0.2 compared to 31 December 2014

FULL YEAR 2015 OUTLOOK: OBJECTIVES MAINTAINED

• Unit cost reduction in the 1% to 1.3% range[4]
• Significant reduction in net debt, from 5.4 billion euros at end 2014 down to around 4.4 billion euros at end 2015

ACCELERATION OF PERFORM 2020

• Launch of immediate cost-saving measures
• Acceleration of all cost reduction initiatives
• Adjustment of Winter 2015-16 capacity

[1] Like-for-like: excluding currency. Same definition applies in rest of press release

[2] See definition in appendix

[3] Trailing 12 months, EBITDAR adjusted for September 2014 pilot strike impact; see definition in appendix

[4] On a constant currency, fuel price and pension-related expense basis. See computation in appendix

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The Board of Directors of Air France-KLM, chaired by Alexandre de Juniac, met on 23 July 2015 to approve the accounts for the First Half of the Financial Year 2015.

Key Data

The consolidated financial statements of the Group have been revised as of 1^st January 2015 in order to improve their clarity. The changes are:

• In view of its rapid development, Transavia is now presented as a separate business segment. The passenger business segment is thus renamed from “passenger” to “passenger network”.
• Capitalized production costs are no longer deducted from individual cost lines in the profit and loss statement, but are instead fully allocated to the “other income and expenses” line. The impact per quarter of this restatement is provided in the appendix.
• Foreign currency effects on provisions are no longer recorded in “amortization, depreciation and provisions” but in “other financial income and expenses”. The closing exchange rate is used to convert provisions at the closing date. Previously, the Group used the average rate of the US dollar to convert maintenance provisions. The consolidated financial statements as of December 31, 2014 have been restated for reason of comparison. The impact of this restatement is provided in the appendix.

• Watch the broadcast of the press conference at 10:30 am CET

PASSENGER

• 6.9 million passengers, +2.1%
• Capacity growth in the Americas driven by Latin America, up 7.2%
• Continued decrease of domestic France capacity, down 6.0%
• Unit revenue per available seat kilometer (RASK) ex-currency down compared to October 2013

TRANSAVIA

• 1.0 million passengers, +17.9%
• Ongoing accelerated development in France: capacity up 42.7%
• Load factor above 90% in spite of high capacity growth

CARGO

• Unit revenue per available ton kilometer (RATK) ex-currency down compared to October 2013

Agenda

• 8^th December 2014: November 2014 traffic
• 8^th January 2015: December 2014 traffic

​

Short and medium-haul capacity at the Paris-Charles de Gaulle and Amsterdam-Schiphol hubs will increase slightly (+3.1%). In the same way as last summer, point-to-point short and medium-haul capacity will continue to decrease (-11.3%). Transavia capacity will increase by +13.3%, with growth concentrated on the French market (+56%).

Air France-KLM has chosen to move upmarket with the progressive introduction of new products and services of the highest global standards.

On the long-haul network, 22 Boeing 747 have been equipped with KLM’s new World Business Class and 777-200s will be finished before the summer of 2015, followed by implementing the new World Business Class in the 777-300s. By the end of 2016 about 80% of the KLM fleet will be done. Air France continues to roll out its new Best cabins: five Air France Boeing 777s will be equipped by end-2014. Flights to New York, Singapore and Jakarta have already been equipped with these brand new products. Services to Tokyo-Haneda, Shanghai, Dubai, Houston, Sao Paulo, Douala and Malabo will gradually be added to this list in winter 2014.

Furthermore, this winter the Company will operate two new destinations by A380: Miami and Abidjan, in addition to Los Angeles, New York, Johannesburg, Hong Kong and Shanghai already served by the superjumbo this summer.

Long-haul: + 0.3%

On the long-haul network, Air France-KLM Group capacity is up slightly compared with winter 2013-14 at +0.3%.

• North America: capacity increases by +2.4%

On the North American network, capacity is up +2.4% compared with winter 2013-14

KLM is once again increasing capacity to Atlanta, from 7 to 12 weekly flights, in response to market demand. These new frequencies will facilitate connections with the Delta Air Lines network in Atlanta, one of the main hubs served by the Air France-KLM partner.

The Air France Airbus A380 will be flying the Miami route as from early December. Three U.S. destinations will thus be operated this winter by the A380 on departure from Paris-Charles de Gaulle - New-York-JFK, Los Angeles and Miami.

In Mexico, KLM will increase its frequencies to Mexico City, from 7 to 9 weekly flights in November and December, in line with seasonal demand. Air France capacity on a code-share basis with Aeromexico is increasing with 13 new destinations in Mexico and Central America on departure from Mexico City.

• Central and South America: capacity increases to +1.1%

In Central and South America, Group capacity is up +1.1%.

Air France continues to serve Brasilia (Brazil) three times a week and Montevideo (Uruguay) is served daily in continuation of Buenos Aires (Argentina). The Company is increasing capacity to Panama City, increasing from three to five weekly frequencies by B777-200 and benefits from Copa’s Central American hub thanks to the commercial agreement between the two airlines.

Air France-KLM continues its close cooperation with the Brazilian airline GOL in order to take advantage of its joint network in the region and offer its customers improved connecting opportunities with the Brazilian domestic network this winter.

In the Caribbean, Air France-KLM capacity is revised downwards (-2.2%). Between mid-December and mid-January, Air France will operate 13 weekly flights (instead of 14) to Pointe-à-Pitre and 11 weekly flights (instead of 14) to Fort-de-France. KLM will increase capacity in the Caribbean in response to increasing demand for these destinations.

• Asia: a slight rise in capacity of +0.7%

In Asia, Group capacity is up slightly at +0.7%.

In continuation of the summer schedule, Air France is continuing to serve Tokyo-Haneda airport up to 11 times per week in addition to the daily flight to Tokyo-Narita, providing connecting opportunities to Noumea (New Caledonia). Services to Jakarta (Indonesia) in continuation of the Singapore flight are also maintained on a daily basis.

To take advantage of the seasonal nature of certain destinations, Air France is increasing capacity during the peak winter season between mid-December and mid-March to Bangkok (Thailand) (one daily flight) and Kuala Lumpur (Malaysia) (addition of a fourth frequency).

In China, capacity to Wuhan is being increased by one weekly frequency, with three weekly flights. Guangzhou will be served by four weekly flights.

KLM continues to cooperate with its Asian partners to offer customers a wider choice of connecting flights and even more destinations in Asia.

• Africa: capacity slightly down by -0.8%

In Africa, Group capacity is slightly down to -0.8%.

Air France is adjusting its flight offering and reinforcing its most buoyant routes such as Abidjan (Ivory Coast), with the entry into service of the A380, and Pointe Noire (Congo) with the introduction of a sixth weekly frequency.

In East Africa, KLM is reorganizing its network to adapt it to specific market expectations. Capacity to Dar es Salaam (Tanzania) and Entebbe (Uganda) is up. The two cities are now served directly three times a week. On the other days, they are served via Kilimanjaro (Tanzania) and Kigali (Rwanda) respectively. KLM has suspended direct service to Harare (Zimbabwe) and Lusaka (Zambia). These two destinations remain in the Group’s capacity and are currently served by Kenya Airways via Nairobi (Kenya).

In the Indian Ocean region, Air France-KLM is adjusting capacity (-2.8%). From mid-December to mid-January, Air France will offer 11 flights to Reunion island (instead of 12) and an additional flight to Mauritius.

• Middle East: capacity down by -5.2%

In the Middle East, Air France-KLM capacity is down by -5.2%. KLM is again increasing capacity to Abu Dhabi (United Arab Emirates) in combination with Bahrein, as a result of its optimized cooperation with Etihad Airways, Air France-KLM’s partner. KLM will serve this destination using an Airbus 330-300, instead of an A330-200. Dubai will be served by the Air France B777-300 equipped with the new Best cabins in early 2015.

Medium-haul

On the medium-haul network, the 2014-15 winter season sees the full effect of the measures of the Transform 2015 plan.

• On departure from the Paris-Charles de Gaulle and Amsterdam-Schiphol hubs: capacity increases by +3.1%

Air France and KLM continue to serve the routes launched this summer: on departure from Paris-Charles de Gaulle, Stavanger (Norway) with two daily frequencies; on departure from Amsterdam-Schiphol, two daily flights to Turin (Italy), one daily flight to Bilbao (Spain) and Zagreb (Croatia).

KLM strengthens its position in Scandinavia by increasing frequencies to Bergen (Noway) with three daily flights and five daily flights to Billund (Denmark). KLM will also increase capacity to Moscow (Russia) and Bordeaux with three daily flights.

Air France aims to better seize connecting opportunities to the rest of the world and maintain capacity adapted to variations in demand between winter and summer: for example, one daily frequency is being suspended to Munich (Germany), Bucharest (Romania), Moscow (Russia), Rome (Italy) and Bremen (Germany).

• On departure from Paris-Orly and the French provinces: capacity down by -11.3%

This winter, point-to-point short and medium-haul capacity (Air France, HOP!) is down by -11.3%. Seasonal adjustments are more pronounced, with the aim to return to operational breakeven by 2017.

On departure from Paris-Orly, Air France suspends one daily flight to Bordeaux and two daily frequencies to Toulouse. From the provinces, structural adjustments continue, notably with the suspension of several destinations in Europe and North Africa on departure from Toulouse and Marseille.

HOP! capacity is slightly up in France and to major European cities on departure from the French provinces. With its 26 destinations, Lyon is the Company’s main base, giving customers from the French regions access to a vast network of connecting flights.

Low-cost leisure operations

Transavia: strong increase in capacity of +13.3%

Transavia France, a low-cost subsidiary of the Air France-KLM Group, will continue to develop as outlined in the Transform 2015 plan. During the 2014-15 winter season, Transavia France will operate nine new routes launched this year on departure from Paris-Orly – Istanbul, Tel Aviv, Budapest, Madrid, Malaga, Barcelona, Athens, Pisa and Prague. On departure from Lyon, Transavia will also inaugurate a service to Tel Aviv as from October 2014.

The Air France-KLM network in a few clicks

Discover all the destinations offered by Air France, KLM, HOP!, Transavia, and their partners on the Group’s new interactive network map, at http://corporate.airfrance.com/en/the-company/network/

In just a few clicks, you can access all the destinations, schedules, flight durations and all the useful information you need to prepare and book your trip.

* capacity measured in available seat-km compared with the 2013-14 winter schedule

• 5.7 million passengers, -16.3%
• Unit revenue per available seat kilometer (RASK) ex-currency down compared to September 2013
• 14 days of strikes by several Air France pilot unions, operations disrupted for a further two days

Transavia

• 1.1 million passengers, +10.2%
• Ongoing accelerated development of Transavia in France: capacity up by 21.4%, with a load factor above 85%

Cargo

• Unit revenue per available ton kilometer (RATK) ex-currency down compared to September 2013

The impact of the pilot strike on the third quarter operating result is currently estimated at between €320 million and €350 million. This figure includes the impact on revenue, net of the expenses avoided, together with all the additional costs.

Furthermore, between the beginning and the end of the strike, the Group noted a 1 to 2-point delay in fourth quarter booking trends, without being able precisely to apportion responsibility for this delay between the strike and the unfavorable demand trend seen since the early summer and subsequently confirmed. The Group estimates that part of this delay could be progressively reduced over the coming weeks, without being able to quantify this adjustment exactly given the exceptional nature of the event.

All of the above elements could have an impact of around €500 million on EBITDA for the 2014 financial year.

Strategic development: Winter 2014-15 schedule
For the 2014-15 Winter season (26th October 2014 to 28th March 2015), the Group’s capacity expressed in ASK is expected to grow by +0.7%, of which +0.1% for the passenger business (Air France, Hop and KLM) and +13.3% for Transavia.

• Long-haul capacity will be broadly stable (+0.3%) with very targeted development: maintenance of the Paris-Brasilia service launched over the summer within the framework of the partnership with GOL, additional Amsterdam-Atlanta flights, bringing into service of the A380 on Abidjan, and ongoing development of Tokyo Haneda.
• Short and Medium-haul capacity from the CDG and Amsterdam hubs will be slightly increased (+3.1%), driven as over the summer by the growth in the network at Amsterdam. Main developments include the maintenance over the Winter of the services launched during the summer from Amsterdam to Turin, Bilbao and Zagreb and from Paris to Stavanger, additional frequencies on Amsterdam-Bergen, Billund, Moscow and Bordeaux.
• As in the Summer season, Short and Medium-haul point-to-point capacity continues to be adjusted lower (-11.3%) with, notably, a further adaptation of the schedule in the provincial bases, and some frequency reductions on Orly-Bordeaux and Orly-Toulouse.

The Group continues the deployment of its new long-haul products. By the end of 2014, 22 B747s and one B777 will be equipped at KLM and 5 B777s at Air France.

Transavia capacity will be up 13.3%. Growth will be concentrated on France (+56%) with, notably, the maintenance of routes with reduced seasonality launched in Summer 2014.

Agenda

• 29^th October 2014: Q3 2014 results release
• 12^th November 2014: October 2014 traffic
• 8^th December 2014: November 2014 traffic

Na bestudering van de verschillende alternatieven is besloten de Full Freighter-vloot op Schiphol per eind 2016 terug te brengen tot 3 toestellen. Hiertoe zullen 5 MD-11’s gedurende 2015 en 2016 versneld worden uitgefaseerd.

De Groep zal dan beschikken over een Full Freighter-vloot van 5 toestellen: 2 Boeing 777F’s in Parijs en 3 Boeing 747ERF’s in Amsterdam. In 2013 bestond de vloot nog uit 14 toestellen.

Air France-KLM streeft ernaar om voor al het betrokken personeel een baan te vinden binnen de Groep. Hierover zal overleg plaatsvinden met de Ondernemingsraad en vakbonden van de betrokken ondernemingen.

De Groep blijft een belangrijke speler in de Europese cargosector dankzij haar uitgebreide netwerk van passagierstoestellen met transportcapaciteit in het vrachtruim, aangevuld met Full Freighter-toestellen.

Deze verandering in de Full Freighter-vloot maakt deel uit van een strategisch plan om de bijdrage van Cargo aan de Groep te vergroten. Andere maatregelen zijn o.a. een sterke focus op gespecialiseerde producten als Pharmaceuticals en Express, investeringen in een geavanceerde IT-infrastructuur en e-developments, verdere kostenreductie en meer samenwerkingsverbanden.

1. Revenues of 5.55 billion euros, stable on a like-for-like basis, impacted by Easter calendar effect
2. Operating result of -445 million euros, an improvement of 87 million euros
3. EBITDA¹ of -50 million euros, an improvement of 66 million euros
4. Reported unit cost[1] down 4.3%, and 1.7% like-for-like

FULL YEAR 2014 OUTLOOK: OBJECTIVES CONFIRMED

1. Positive effect of Transform 2015
2. Operating environment remains tough
3. Measures underway to address headwinds from Caracas route and the slower than expected recovery in cargo demand

[1] See definition in appendix

First Quarter 2014 revenues stood at 5,554 million euros versus 5,681 million euros in 2013, down 2.2%, but stable on a constant currency and scope basis (like-for-like). Currencies had a negative 108 million euro impact on revenues.

Operating costs were reduced by 3.4% and by 2.0% on a constant currency basis. Ex-fuel, they decreased by 2.3%, and by 1.3% on a constant currency basis. Unit cost per EASK¹ (Equivalent Available Seat Kilometer) was reduced by 4.3%, and by 1.7% on a constant currency, fuel price and pension expense basis, against capacity measured in EASK up by 1.2%. The fuel bill amounted to 1,553 million euros, down 6.3%, and down 3.5% on a constant currency basis. Total employee costs including temporary staff were down 3.8% to 1,846 million euros, and by 3.6% on a constant currency basis. At constant pension expense and scope, they declined by 60 million euros, well on track towards the 120 million euro reduction targeted for the full year.

EBITDA amounted to -50 million euros,  an improvement of 66 million euros. The EBITDA margin stood at -1.0%, a 1.0 point improvement on 2013. The operating result stood at -445 million euros versus -532 million euros in 2013, an 87 million euro improvement. Currencies had a 15 million euro net negative impact on First Quarter operating result.

Net result, group share stood at -608 million euros against -641 million euros a year ago. It was impacted by 117 million euros of foreign exchange losses, in particular related to an adjustment in the value of the cash held by the Group in Venezuela, to take into account the currency conversion risk. On an adjusted basis[1], the net result, group share stood at -485 million euros against-652 million in First Quarter 2013, a 167 million euro improvement.

Earnings and diluted earnings per share both stood at -2.05 euros (-2.17 euros in 2013), and at -1.64 euros on an adjusted basis (-2.20 euros in 2013).

[1] See definition in appendix

Passenger business

First Quarter 2014 passenger revenues amounted to 4,365 million euros, down 1.9%, but stable on a constant currency basis. The passenger business was particularly impacted by the calendar effect of Easter, which fell in March last year. The operating result of the passenger business stood at -378 million euros, versus -447 million euros in Q1 2013, an improvement of 80 million euros on a constant currency basis.

Total passenger traffic rose by 2.1% while capacity rose by 1.3% leading to a 0.6 point improvement in load factor to 82.8%. Unit revenue per Available Seat Kilometer (RASK) fell by 2.5% and by 0.7% like-for-like. Unit costs (CASK) were reduced by 3.9% and by 2.4% like-for-like.

Long-haul traffic rose 2.2% for a 2.1% rise in capacity, leading to a stable load factor at 85.2%. Long-haul RASK was down 0.4% like-for-like.

Cargo Business

As planned in the framework of Transform 2015, medium-haul capacity was reduced by 2.2%. Traffic rose by 1.6%, leading to a 2.7 point improvement in load factor to 73.3%. Medium-haul RASK improved by 0.6% like-for-like.

First Quarter 2014 cargo revenues amounted to 676 million euros, down 3.4% and by 1.3% on a constant currency basis. Traffic experienced a slight upturn, rising by 1.9% for a 0.9% decline in capacity, leading to a 1.8 point increase in load factor to 64.8%. However, the yield remained weak, leading to a 1.0% decline in unit revenue per Available Ton Kilometer (RATK) on a constant currency basis (-3.0% on a reported basis).

Thanks to a reduction in unit cost (down 3.7% on a constant currency basis, and 5.4% on a reported basis), the operating result improved, from -50 million euros in Q1 2013 to -34 million euros. Nevertheless the recovery of cargo demand is taking longer than expected, and further scenarios are now under consideration to restructure the full freighter business in order to accelerate the turnaround.

Maintenance

First Quarter 2014 third party maintenance revenues amounted to 290 million euros, down 4.0% and by 1.9% on a constant currency basis, reflecting quarterly variations in the scheduling of engine shop visits. The operating result stood at 22 million euros, up 2 million euros year-on-year. The operating margin stood at 2.7% versus 2.5% a year earlier. In the quarter, the group recorded a 15% increase in its order book to 5.2 billion euros, including a major contract with Air China to cover the maintenance of GE90 engines.

Other business: Transavia

In First Quarter 2014 Transavia traffic rose 8.4% for capacity up 7.6%, leading to a 0.6 point increase in load factor to 86.3%. Unit revenue was down 4.3%, also affected by Easter timing. Transavia’s total revenue stood at 139 million euros, up 3.7%. The operating result was -58 million euros, down 7 million euros year-on-year.

Other business: Catering

First Quarter 2014 third party catering revenues amounted to 73 million euros, down 13.1% reflecting the deconsolidation of Air Chef. They were up 12.3% at constant scope.

Financial situation

The further improvement in EBITDA translated into an 84 million euro increase in cash flow before change in WCR and the cash out related to Voluntary Departure Plans.

In the First Quarter net investments before sale & lease-back transactions stood at 327 million euros, in line with the Transform 2015 full year capex budget. Operating free cash flow amounted to -80 million euros, versus a positive 40 million euros a year earlier, partly due to the fact that Q1 2013 benefited from a cash inflow of 77 million euros from sale and lease-back transactions.

Net debt amounted to 5.54 billion euros at 31 March 2014, versus 5.35 billion euros at 31 December 2013. The slight increase in net debt reflects foreign exchange losses partly relating to Venezuela. At 2.9x, the net debt / EBITDA ratio was stable compared to 31 December 2013.

Outlook
Delivery on the Transform 2015 plan is fully on track. However, the general operating environment remains tough. Under these conditions, the group remains committed to its objective of an EBITDA in the region of 2.5 billion euros in Full Year 2014, subject to the successful implementation of the measures aimed at compensating for the slower than expected recovery in cargo demand and the network adjustments linked to the situation on the Caracas route, and no reversal in other operating trends. The group will continue to reduce its net debt in line with its objective of 4.5 billion euros in 2015.

The Board of Directors of Air France-KLM, chaired by Alexandre de Juniac, met on 25th July, 2013 to examine the accounts for the First Half of Financial Year 2013.  

Alexandre de Juniac made the following comments: "Transform 2015 is fully on track, with cost reduction measures, the industrial plan and initiatives to win back our customers all underway within the planned timeframe. For the past year our results have improved quarter after quarter, in spite of the persistently tough economic environment. Nevertheless, revenues remain below target at this stage and the turnaround of the Medium-haul and Cargo businesses in particular is taking longer than expected. As a result, further measures will be adopted in both businesses in the Fall to ensure that, on completion of our plan, we will have met our cost and debt reduction objectives, paving the way for a return to growth".

Air France-KLM will develop the strategy for its three businesses (Passenger-Cargo-Maintenance) as part of an ongoing dialogue with the companies. The companies are responsible for strategy and operational implementation and the quality of customer service, with the Group's support.

This new phase will strengthen collaboration between Air France and KLM, based on transparent, effective and fair decision-making processes.

The Group’s Executive Committee is made up as follows:

• Group Chairman and CEO: Alexandre de Juniac

Air France and KLM representatives

• Air France Chairman and CEO: Frederic Gagey
• KLM President and CEO: Camiel Eurlings
• Air France COO: Alain Bassil
• KLM COO and KLM Deputy CEO: Pieter Elbers

Group functions

• Executive Vice-President Commercial, Sales and Marketing: Patrick Alexandre
• Executive Vice-President Commercial Marketing: Pieter Bootsma
• Chief Financial Officier: Philippe Calavia
• Executive Vice-President Strategy - Passenger Business: Bram Gräber
• Executive Vice-President Human Resources: Wim Kooijman
• Executive Vice-President Information Technology: Jean-Christophe Lalanne
• Executive Vice-President Engineering and Maintenance: Franck Terner
• Executive Vice-President Cargo: Erik Varwijk
• Chief of staff, Group Executive Committee Secretary: Guy Zacklad

- Biographies and pictures available on www.airfranceklm.com and www.klm.com/corporate/nl/

Thanks to its performance, the group is also leader of the broader "Transport and leisure" sector for the fourth year running. This distinction ranks the 19 most responsible companies in the world, each in their own sector of activity.

Air France-KLM has been committed for many years to reducing its environmental impact, developing a responsible social policy and contributing to the development of territories where its aircraft take off and land every day. In 2011, the group operated the first commercial flights using sustainable biofuel, developed eco-design and the recycling of products served on board and supported numerous humanitarian programmes.

The DJSI is a benchmark in extra-financial ratings. It selects each year the 19 leading companies from among 2,500 international companies, following an analysis process by the Swiss group SAM (Sustainable Asset Management Indexes GmbH).

The Air France-KLM group has been part of the DJSI since 2005 and is also integrated in the non-financial indexes ASPI, Ethibel Sustainabilty Index (ESI) and FTSE4Good.