In the first quarter of 2024, Air France-KLM Group saw a notable increase in passenger numbers, welcoming 20.9 million travellers, marking a 6.2% rise from the previous year. With capacity expanding by 4.5% and traffic growing by 5.0%, the load factor experienced a slight uptick of 0.4 points compared to the previous year.
However, despite these positive indicators, the group reported a loss in operating result, standing at €183 million below last year at -€489 million. This decline was primarily attributed to a rise in unit costs amounting to €243 million and a decrease in cargo unit revenues by €157 million. Although partially offset by lower jet fuel prices, including ETS costs, and higher passenger unit revenue, the impact on the operating result was significant. The Group reported a net loss of €480 million compared to a net loss of €143 million in 2023.
The Group’s unit cost per ASK increased by 4.0% compared to last year, aligning with the outlook provided during the FY 2023 results presentation. This increase stemmed mainly from higher operational disruption costs, accounting for 0.8% in the unit cost development, as well as a one-time salary payment at KLM as agreed in the collective labour agreement for 0.8%.
Despite these challenges, the operating free cash flow stood at €140 million, buoyed by a positive working capital development driven by promising summer ticket sales. However, this was offset by the payment of deferred pension, social charges and wages taxes inherited from the pandemic, including a one-time pension payment of €610 million by Air France in January 2024 to the Caisse des Retraites des Personnels Navigants (CRPN), as well as social charges and wages taxes amounting to €120 million paid by the Group during the quarter.
In March, Air France-KLM Group repaid approximately €452 million of the outstanding €500 million of the bonds convertible into new shares and/or exchangeable for existing shares due March 25, 2026 (the “OCEANE 2026”), as requested by the bondholders. Despite this repayment, the cash at hand decreased to €9.9 billion, down €0.6 billion from the end of 2023, resulting in a Net Debt / EBITDA ratio of 1.3x. (€1.00 = US$1.07 at time of publication).
