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Air France-KLM revenues up 0.4%

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Staff writer ▼ | February 21, 2014
Air France-KLM announced results for the full year 2013. Total revenues stood at 25,520 million euros versus 25,423 million euros in 2012, up 0.4%, and by 2.3% on a constant currency basis.
Air France-KLM
Air France-KLMAir France-KLM announced results for the full year 2013. Total revenues stood at 25,520 million euros versus 25,423 million euros in 2012, up 0.4%, and by 2.3% on a constant currency basis.


Operating costs declined by 1.4% and were flat on a constant currency basis. Ex-fuel, they rose fractionally by 0.1%, and by 0.8% on a constant currency basis. Unit cost per EASK (Equivalent Available Seat Kilometer) was reduced by 3.8%, and by 2% on a constant currency, fuel price and pension expense basis, against capacity in EASK up by 1.6%.

The fuel bill amounted to 6,897 million euros, a decline of 5.2% reflecting a currency effect of -3.1%, a 1.8% decline in fuel price after hedging, and a 0.4% reduction in volumes. Employee costs were down 2.4% to 7,482 million euros, and by 2.2% on a constant currency basis. At constant pension expense and scope, and including temps, employee costs fell 218 million euros, in line with the target of a 200 million euro reduction over the full year.

EBITDA amounted to 1,855 million euros, up by 33%, implying an improvement of 461 million euros. The EBITDA margin stood at 7.3%, a 1.8 point improvement on 2012. The operating result for the full year was back in positive territory at 130 million euros versus -336 million euros in 2012, a 466 million euro improvement.

The net result, group share reflected a tax asset impairment of 937 million euros as well as the impact of discontinued operations (CityJet, whose disposal is underway) to the tune of -122 million euros over the full year, to stand at -1,827 million euros against -1,225 million euros a year ago.

The impairment of deferred tax assets relates to tax losses from previous fiscal years which were recognised in the balance sheet. It results from taking into account activity forecasts as they were communicated to the market in October 2013 as well as a reduced visibility on the conditions for applying prior year tax losses.

Under current French tax law, deferred tax assets no longer recognised in the balance sheet nevertheless remain available, and the group maintains the right to apply them to future profits. This impairment will not involve any cash out, current or future, and has no impact on the group’s liquidity nor its solvency.

On an adjusted basis, the net result stood at -349 million euros against -696 million in 2012, a 347 million euro improvement.

Earnings and diluted earnings per share stood at -6.17 euros (-4.14 euros in 2012), and at -1.18 euros on an adjusted basis (-2.35 euros in 2012). The Board of Directors decided not to pay a dividend.


 

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