- Air France-KLM‘s second-quarter operating income rose 43% year-over-year to €736 million, beating the estimate of €641.8 million.
- Net income soared to €605 million, significantly higher than last year’s €121 million and surpassing the estimate of €347.4 million.
- Revenue increased by 6.2% year-over-year to €8.44 billion, though slightly below the estimated €8.5 billion.
- Network airlines passenger revenue reached €6.36 billion, missing the estimate of €6.44 billion.
- Transavia’s revenue was €946 million, below the estimated €961.3 million.
- Cargo revenue came in at €565 million, underperforming against the estimated €590.9 million.
- Maintenance revenue was strong at €1.38 billion, beating the estimate of €1.3 billion.
- The company reported a negative adjusted free cash flow of €61 million, a 87% decrease compared to the previous year.
- Net debt stood at €7.14 billion, slightly better than the estimated €7.2 billion.
- Cash and cash equivalents were robust at €4.85 billion, surpassing the estimate of €4.42 billion.
- Revenue Passenger Kilometers (RPK) reached 74.40 billion, up 4.2% year-over-year, but just shy of the 74.48 billion estimate.
- The passenger load factor increased slightly to 87.8%, compared to 87.7% last year, exceeding the estimate of 87.4%.
- The FY 2025 outlook is reaffirmed, with expected capital expenditure between €3.2 billion and €3.4 billion.
- Unit revenue at constant currency increased by 2.4%, supported by Network and Transavia contributions.
- Unit costs rose by 2.7% due to factors such as air traffic control and airport charges, with Schiphol tariff increasing by 41%.
A look at Air France-KLM Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Air France-KLM appears to have a promising long-term outlook. The company scored high in Growth, Resilience, and Momentum, indicating strong potential in these areas. With a Growth score of 4, Air France-KLM shows promising prospects for future expansion and development. Additionally, its Resilience and Momentum scores of 4 and 5, respectively, suggest the company’s ability to weather challenges and capitalize on market trends effectively. While Value and Dividend scores were lower, the overall positive trajectory in other key areas bodes well for Air France-KLM‘s future stability and growth.
Air France-KLM, a provider of air transportation services, demonstrates a global presence in serving customers worldwide. The Company’s operations span various aviation services, including airlines, travel booking, catering, freight transportation, aircraft maintenance, and pilot training. With strong scores in Growth, Resilience, and Momentum, Air France-KLM showcases a robust outlook for the long term, reflecting its potential for future expansion and adaptability to market dynamics. While Value and Dividend scores are lower, the company’s overall profile suggests a positive trajectory in key performance areas, positioning it well for sustained growth and success in the competitive airline industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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