1ST QUARTER 2004-05
Turnover up 12.3% to Eur4.46 bn
1.5%-increase in unit revenue per available-seat-kilometer (excl. currency effect)
First positive effects of Air France-KLM combination
Due to the acquisition of KLM on 3 May 2004, Air France-KLM consolidated data (revenues and traffic) are presented on a consolidation basis of 3 months for Air France (April to June) and 2 months for KLM (May and June).
Given the change in the Group’s scope, percentage changes have been calculated on a 2003 pro forma basis.
During the 1st quarter of 2004-05, the Air France-KLM Group posted a strong increase in turnover, up 12.3% to 4.46 billion euros compared to last year's quarter which had been impacted by the war in Iraq and the SARS epidemic.
Both airlines contributed positively to this increase:
- Air France's contribution to the consolidated turnover over 3 months amounted to 3.36 billion euros, up 11.8%.
- KLM's contribution to the consolidated turnover over 2 months (May and June) amounted to 1.10 billion euros, up 14.3%.
This performance also reflects the very first positive effects of the combination of the Air France and KLM networks. As from 1st June 2004, in addition to enhanced service between the two hubs, passengers have equal access to Air France's offer via Paris-CDG and to KLM's offer via Amsterdam, thanks to the combination of fares. This has significantly strengthened the Group's competitive position.
Passenger business
During the period, the Air France-KLM Group reported a strong recovery in passenger activity both in terms of traffic volumes and revenues.
The Air France-KLM Group consolidated traffic increased by 16.9% on 12.9% higher capacity, leading to 2.7- point improvement in load factor to 77.7%.
All long-haul routes but the Caribbean & Indian Ocean contributed positively to this performance:
- The Americas posted a 3.6-point improvement in load factor notably thanks to strong demand on Latin American routes.
- The Asian network posted significant increases in traffic and capacity (+ 62.7% and +37.9 % respectively), bearing in mind that last year's quarter had been impacted by the SARS epidemic. The load factor reached the high level of 79.5%, up 12.1 points.
- On the Africa & Middle East sector, the load factor gained 2.5 points to 74.3%, as traffic increased by 14.5% on 10.7% higher capacity.
- On Caribbean & Indian Ocean routes, where Air France accounts for more than 80% of the Group’s capacity, the French airline decreased its capacity in order to take the new competitive environment into account. Consolidated capacity was therefore reduced by 5.0%, while traffic decreased by 10.8%.
On the European medium-haul network (including the French domestic market), traffic increased in line with capacity (+10.5% and 10.6% respectively) thanks to the attractive fares implemented by Air France and KLM. The load factor remained stable at 69.3%. The Group's good performance was due to the robust activity of each airline:
- Air France traffic increased by 15.8% during the 1st quarter for a 12.2% rise in capacity. The seat load factor gained 2.4 points to reach 76.8%.
- KLM traffic rose 19.8% during the May-June period while capacity increased by 14.7%. The seat load factor improved by 3.4 points reaching 80.1%.
Consolidated traffic revenues increased by 12.4%. As traffic grew by 16.9%, yield declined by 3.9% including a 2.0% negative currency effect.
The significant improvement in load factor (up 2.7 points) offset the decline in unit revenue per ASK to -0.5% after factoring in a negative currency impact of 2.0%.
- Air France's unit revenue per ASK was down 1.4% (including an unfavourable currency effect of 1.9%) over the three month period (April to June).
- For the May-to-June period, KLM's unit revenue per ASK improved by 3.0% despite a negative currency effect of 2.4%.
