Air France-KLM reached a level of turnover close to that of 2019, at 26.4 billion euros. PHILIPP GUELLAND / AFPAir
After two years of massive losses, the Franco-Dutch airline group generated 728 million euros in net profit.
France-KLM is largely back in the green in 2022 after two years of massive losses, generating 728 million euros in net profit, and plans to be released in April from the constraints linked to the aid granted by the States during the health crisis. This result represents more than double the 290 million euros of 2019, before the pandemic plunged air transport into the worst crisis in its history. In 2020, the Franco-Dutch airline group had suffered an abysmal loss of 7.1 billion euros, further increased by 3.3 billion in 2021.
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In addition to this return to profits, Air France-KLM reached a level of turnover close to that of 2019, at 26.4 billion euros, against 27.2 three years earlier, he underlined on Friday. in a press release. And this, while the group transported only 83 million people last year, i.e. 21 million less than in 2019. In addition, it had only deployed 85% of its passenger seat capacity in 2022. pre-crisis.
“We end the year with a positive net result, after turning the page on Covid, and look to the future with confidence in our ability to face future challenges.“, said the director general of Air France-KLM, Benjamin Smith, quoted in the press release. Saved from bankruptcy by the interventions of the French and Dutch States, and after two recapitalizations, the group emerged intrinsically more profitable from the Covid-19 crisis. It carried out a cost reduction plan, getting rid of its less profitable aircraft and reducing its workforce through voluntary redundancy plans. At the end of last December, it employed 75,500 full-time equivalents, compared to 85,600 at the end of 2019.
Debt reduced to 6.3 billion euros
After this year 2022, which will have made it possible to virtually erase the effects of the crisis on activity and profitability – the operating margin of 4.5% was higher than the 4.2% of 2019 -, Air France-KLM hopes to be able to do the same for its financial structure. The group further reduced its net debt, reduced from 8.2 to 6.3 billion euros between the end of 2021 and the end of 2022. The ratio between debt and gross operating margin (Ebitda) fell back to 1.8, already under the objective mentioned since 2021 of a range of 2 to 2.5 for 2023, which could allow the whole to have easier access to the markets for refinancing.
In addition, the company intends to be released by April from all obligations related to the aid provided in 2020 and 2021 by the States of origin of its two main companies, to enable it to survive the pandemic. This will involve the repayment of the last tranche of 2.5 billion euros of loans guaranteed by the French State, but also the conversion in March and April of 600 million euros of securities assimilated to equity. The capital structure will not be changed, the State still holding 28.6% of the shares.
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The group will thus be freed from the constraints that the European Commission had linked to this aid: prohibition on paying dividends, moderation of directors’ remuneration and limitation of acquisitions, for example of other companies, while certain competitors have emerged much weaker from the health crisis.
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