2005-06 FINANCIAL YEAR
BREAKEVEN AT THE OPERATING LEVEL IN THE FOURTH QUARTER

FULL YEAR RESULTS CONFIRM THE SUCCESS OF THE AIR FRANCE-KLM MERGER
* Revenues up by 10% to 21.4 billion euros
* Operating income up by 69% to 936 million euros, with a strong rise in the operating margin to 4.4%
* Free cash flow of over 1 billion euros
* Dividend per share of 30 euro cents
* Recognition of the KLM pension fund surplus (928 million euros in respect of the 2004-05 accounts).

“The year 2005-06 was marked by two features: strong world economic growth leading to extremely dynamic levels of activity in our sector, and a significant rise in oil prices. In this environment, we have confirmed the success of the Air France-KLM merger” said Chairman Jean-Cyril Spinetta during the board meeting of May 17, 2006, to approve the statements for the
2005-06 Financial Year. “We have affirmed our leadership in our sector, with the strongest growth in traffic and load factors in Europe. The synergies generated by the merger, combined with our ongoing cost-control measures have not only enabled us to attenuate the impact of the rise in fuel prices, but also to improve our margins significantly. At the same time, we have
considerably reinforced our financial structure, while continuing to invest in improving the efficiency of our fleet.
The current year has begun with a further sharp rise in oil prices. Nevertheless, our aim is to generate operating income of at least the same level as last year, leveraging off our competitive advantages, our ongoing cost reduction measures and our hedging policy. This capacity to maintain solid results in an environment characterized by rocketing oil prices gives me great confidence in our ability to improve our profitability over the medium term. In this context, the Board will submit a dividend proposal of 30 euro cents per share to the Annual Shareholders’ Meeting.”

Consolidated figures under IFRS
Based on the IFRIC elements on IAS 19, relating to the recognition of pension fund surpluses, Air France-KLM has retrospectively restated Financial Year 2004-05, revaluing the acquisition balance sheet of KLM. As a result, the Group has written back a sum of 928 million euros, representing the balance of negative goodwill relating to the KLM pension fund surplus, under “income from operating activities” in 2004-05. This restatement has no impact on the 2005-06
accounts.

Outlook
Operating income objective for Full Year 2006-07 of at least the same level
as last year For the current year, Air France-KLM expects to increase capacity by some 5%. Our other assumptions include a rise in unit revenues on a constant currency basis and a euro/dollar exchange rate of 1.22. The efficiency of our hedging contracts should enable us to limit our fuel
bill to some 4.4 billion euros, based on a jet fuel price of 700 dollars per ton. Elsewhere, the level of our investments should begin to decline, and is estimated at 2.1 billion euros for 2006- 07.
On this basis, taking account of our ongoing cost-control measures and thanks to further potential synergies, our objective is of operating income for Full Year 2006-07 of at least the same level as in 2005-06.