Air France-KLM is largely green again in 2022 after two years of massive losses, generating a net profit of 728 million euros, and plans to free itself in April from the limitations linked to aid granted by States during the crisis sanitary. .
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, which increased by 3.3 billion in 2021. In addition to this return to profit, Air France-KLM reached a business turnover level close to that of 2019, at 26.4 billion euros, compared to 27.2 three years earlier, he stressed this Friday in a press release.
And that, while the group transported only 83 million people last year, that is, 21 million fewer than in 2019. In addition, it had only deployed 85% of its passenger seat capacity in 2022 before the crisis. “We are ending the year with a net positive result, after turning the page on Covid, and we look ahead with confidence in our ability to meet future challenges,” Air France-KLM CEO Benjamin Smith was quoted as saying in the press release.
cost reduction
Saved from bankruptcy by the interventions of the French and Dutch states, and after two recapitalizations, the group emerged inherently more profitable from the Covid-19 crisis. It carried out a cost reduction plan, getting rid of its least 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.
After this year 2022, which will have made it possible to practically 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 what same for its financial structure. The group further reduced its net debt, which went from 8,200 to 6,300 million euros between the end of 2021 and the end of 2022. The ratio between debt and gross operating margin (Ebitda) fell to 1.8, already under the mentioned objective from 2021 of a range of 2 to 2.5 by 2023, which could allow the group to have easier access to the refinancing markets.
In addition, the company intends to free itself in April from all obligations related to the aid provided in 2020 and 2021 by the States of origin of its two main companies, to allow it to survive the pandemic. This will mean the return of the last tranche of 2,500 million euros of loans guaranteed by the French State, but also the conversion in March and April of 600 million euros of securities similar to shares. The capital structure will not change, the State will continue to hold 28.6% of the shares.
The group will thus free itself from the obstacles that the European Commission had linked to this aid: prohibition of paying dividends, moderation of the remuneration of directors and limitation of acquisitions, for example of other companies, while certain competitors have come out much weaker of the health crisis.
Source: BFM TV
