Air France-KLM SA (OTCPK:AFRAF) Q4 2024 Results Conference Call March 6, 2025 3:00 AM ET
Company Participants
Ben Smith – CEO
Steven Zaat – CFO
Marjan Rintel – CEO of KLM
Conference Call Participants
Jarrod Castle – UBS
Alex Irving – Bernstein
James Hollins – BNP Paribas Exane
Harry Gowers – JPMorgan
Ruxandra Haradau-Doser – HSBC
Stephen Furlong – Davy
Ben Smith
Good morning, everyone, and thank you for joining us today for the presentation of Air France-KLM’s results for the fourth quarter of 2024. Today, I’m joined by Steven Zaat, Group CFO; Anne Rigail, CEO of Air France; and Marjan Rintel, CEO of KLM.
I’ll start with key highlights from this quarter, followed by Steven, who will walk you through our financial performance and outlook for the year 2024, and then, we’ll wrap it up with closing remarks on our medium-term ambitions before opening the floor for your questions.
Moving first to Slide 4. Okay. Reviewing our key financial indicators for this quarter. The group revenue increased by 6% compared to last year with capacity up 2%. Unit revenue growth accelerated in Q4, plus 4.4% compared to plus 1.4% in Q3, which is adjusted for the impact of the Olympic Games.
The opening result stood at €0.4 billion, a significant improvement from last year’s loss. This marks the strongest fourth quarter on record driven by solid unit revenue growth that outpaced unit cost increases as well as lower fuel prices.
The strong year-end performance helped offset earlier headwinds, resulting in a year operating margin of 5.1%. Despite a challenging operational environment, the group generated €300 million in adjusted recurring free cash flow, in line with the ambition set out during the 2023 Capital Market Day.
The net debt-to-EBITDA ratio stood at 1.7x at the end of the fiscal year, well
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