Q4 2024 Air France KLM SA Earnings Call Transcript
Key Points
- Air France-KLM (AFLYY) reported a 6% increase in group revenue for Q4 2024, with a significant improvement in operating results, marking the strongest fourth quarter on record.
- The company achieved a year operating margin of 5.1%, driven by solid unit revenue growth and lower fuel prices.
- Air France-KLM (AFLYY) generated EUR 300 million in adjusted recurring free cash flow, aligning with their 2023 Capital Market Day ambitions.
- The fleet modernization strategy is progressing well, with new generation aircraft now accounting for 27% of the fleet, a 7-point increase from the previous year.
- Premium revenue grew by 12% year over year, with premium cabins contributing 26.9% of total group revenue, reflecting a successful focus on high-value customers.
- Despite improvements, the company faced a challenging operational environment, impacting overall performance.
- The net debt-to-EBITDA ratio stood at 1.7 times, indicating ongoing financial leverage concerns.
- Air France-KLM (AFLYY) experienced a EUR 100 million decrease in full-year results compared to the previous year, highlighting areas for improvement.
- The company is still dealing with headwinds from increased French aviation taxes and Schiphol tariffs, impacting financial performance.
- Supply chain disruptions continue to affect operations, particularly in maintenance and repair solutions.
Good morning, everyone, and thank you for joining us today for the presentation of Air France-KLM's results for the fourth quarter of 2024. Today, I'm joined by Steven Zaat, Group CFO; I'm the guy, CEO of Air France; and Marjan Rintel, CEO of KLM. I'll start with key highlights from this quarter, followed by Steven, who will walk you through our financial performance and outlook for the year 2024, and then we'll wrap it up with closing remarks on our medium-term ambitions before opening the floor for your questions.
Moving first to slide 4. Okay. Reviewing our key financial indicators for this quarter. The group revenue increased by 6% compared to last year with capacity up 2%. Unit revenue growth accelerated in Q4, plus 4.4% compared to plus 1.4% in Q3, which is adjusted for the impact of the Olympic Games.
The opening result stood at EUR0.4 billion, a significant improvement from last year's loss. This marks the strongest fourth quarter on record driven by solid unit revenue growth
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