Air France-KLM (AF) Q2 2024 earnings summary

Executive summary

• Q2 2024 group revenue rose 4.3% year-over-year to €7.9bn, with 25.7 million passengers carried and capacity up 4.1%, while load factor remained stable.

• Operating result declined to €513m from €733m in Q2 2023, impacted by higher fuel prices, increased unit costs, and a €40m negative effect from the Olympic Games.

• Net income for Q2 2024 was €165m, down from €612m in Q2 2023.

• Premium revenue grew 7.4% year-over-year, with premium leisure and corporate segments showing strong momentum.

• Cost control measures included accelerated transformation, reduced discretionary spending, and a hiring freeze for non-operational staff.

Financial highlights

• Q2 2024 EBITDA was €1,170m, down from €1,328m in Q2 2023.

• Operating margin declined to 6.5% from 9.6% year-over-year.

• Net debt/EBITDA ratio stood at 1.6x at end June 2024.

• H1 2024 revenue grew to €14.6bn, but net income turned to a €314m loss from a €275m profit in H1 2023.

• Unit cost per ASK increased 1.7% year-over-year, mainly due to labor cost increases.

Outlook and guidance

• FY 2024 group capacity guidance revised to +4% growth (previously +5%) to stabilize operations.

• Unit cost guidance set at +2% for the year, with expectations to reach near zero growth in Q4.

• Olympic Games expected to have a €200m negative impact in 2024 (€40m in Q2, €160m in Q3), mainly affecting Air France.

• Post-Olympics, booking load factors for Q4 are in line with last year.

• Net capex for 2024 expected below €3bn.