Air France-KLM

Earnings Release • Jul 8, 2014

JUNE 2014 TRAFFIC

• Passenger: disciplined capacity growth, stable unit revenue at constant currency
• Cargo: further reduction in full freighter capacity
• Full Year 2014 outlook: EBITDA objective revised to between 2.2 and 2.3 billion euros

Traffic highlights

Passenger	Capacity	Traffic	Load Factor	Change
	(ASK, %ch.)	(RPK, %ch.)	(%)	(pts)
Long-haul	+2.0%	+2.6%	86.8%	+0.5
Americas	+5.3%	+4.1%	89.8%	-1.0
Asia	-0.7%	-0.6%	85.7%	+0.1
Africa / Middle East	-0.0%	+0.7%	81.5%	+0.6
Caribbean / Indian Ocean	-0.4%	+7.6%	85.5%	+6.3
Short and Medium-haul	+1.0%	+4.2%	83.6%	+2.5
Total	+1.8%	+2.9%	86.2%	+0.9

7.2 million passengers, +3.9%

Short and Medium-haul affected by air traffic control strikes in both June 2013 and 2014

Unit revenue per available seat kilometer (RASK) ex-currency stable compared with June 2013 in spite of higher load factors

Transavia	Capacity	Traffic	Load Factor	Change
	(ASK, %ch.)	(RPK, %ch.)	(%)	(pts)
Total	+4.6%	+4.3%	90.8%	-0.2

1 million passengers, +7.6%

Ongoing accelerated development of Transavia France: capacity +13.6%

Stable load factor

Cargo	Capacity	Traffic	Load Factor	Change
	(ATK, %ch.)	(RTK, %ch.)	(%)	(pts)
Total	-1.7%	-4.3%	60.7%	-1.6

Further reduction in full freighter capacity, -9.4%

Unit revenue per available ton kilometer (RATK) ex-currency down compared with June 2013

Recent developments

• On June 24, Air France inaugurated the first Boeing 777 equipped with the new cabins on the Paris-New York route. On this occasion the exhibition 'Air France, France is in the air' opened in New York, enabling visitors to discover the numerous product upscaling initiatives implemented by the company. At the same time, KLM is pursuing the deployment of its new World Business Class, which is already installed on its entire fleet of 22 Boeing 747-400s. The equipment of KLM's Boeing 777s will commence in September.
• The voluntary departure plan relating to Air France ground staff, announced in October 2013 as part of the additional restructuring measures, was completed at the end of June. With 1,772 validated applications, corresponding to 1,660 FTEs, the plan almost reached its objective of 1,826 departures. A plan aimed at 700 FTEs among the cabin crew has just begun.

Outlook

While not representing a turning point in market trends, the June traffic figures published today as well as bookings for July and August nevertheless reflect the over-capacity on certain long-haul routes, notably North America and Asia, with the attendant impact on yields. This comes on top of the persistently weak cargo demand and the challenging situation in Venezuela identified in the First Quarter.

These factors lead us to revise our EBITDA target for Full Year 2014 from around 2.5 billion euros to between 2.2 and 2.3 billion euros, a rise of over 20% compared with 2013.

Strong capital disciple will enable us to remain on track in terms of debt reduction and we confirm our objective of 4.5 billion euros in net debt in 2015.

Agenda

25th July 2014: H1 2014 results 8 th August 2014: July 2014 Traffic 8 th September 2014: August 2014 Traffic

Investors Press

Bertrand Delcaire Dirk Voermans France: +33 1 41 56 56 00 +33 1 49 89 52 59 +33 1 49 89 52 60 Netherlands: +31 20 649 45 45 bedelcaire@airfranceklm.com divoermans@airfranceklm.com Website: www.airfranceklm-finance.com www.airfranceklm-finance.com www.airfranceklm.com

STATISTICS

Passenger activity

	June			Year to date
Total Group	2014	2013	Variation	2014	2013	Variation
Passengers carried ('000s)	7,189	6,917	3.9%	37,868	37,156	1.9%
Revenue pax-kilometers (m RPK)	20,437	19,862	2.9%	112,086	109,394	2.5%
Available seat-kilometers (m ASK)	23,720	23,296	1.8%	133,710	132,183	1.2%
Load factor (%)	86.2%	85.3%	0.9	83.8%	82.8%	1.1
Long-haul
Passengers carried ('000s)	2,179	2,126	2.5%	12,070	11,758	2.7%
Revenue pax-kilometers (m RPK)	16,269	15,861	2.6%	90,812	88,459	2.7%
Available seat-kilometers (m ASK)	18,734	18,361	2.0%	106,106	104,232	1.8%
Load factor (%)	86.8%	86.4%	0.5	85.6%	84.9%	0.7
Americas
Passengers carried ('000s)	979	937	4.4%	4,834	4,642	4.1%
Revenue pax-kilometers (m RPK)	7,526	7,227	4.1%	37,849	36,357	4.1%
Available seat-kilometers (m ASK)	8,380	7,961	5.3%	43,364	41,410	4.7%
Load factor (%)	89.8%	90.8%	(1.0)	87.3%	87.8%	(0.5)
Asia / Pacific
Passengers carried ('000s)	524	529	(1.0%)	2,945	2,957	(0.4%)
Revenue pax-kilometers (m RPK)	4,608	4,636	(0.6%)	26,037	26,099	(0.2%)
Available seat-kilometers (m ASK)	5,377	5,414	(0.7%)	30,345	30,836	(1.6%)
Load factor (%)	85.7%	85.6%	0.1	85.8%	84.6%	1.2
Africa / Middle East
Passengers carried ('000s)	438	438	(0.1%)	2,579	2,504	3.0%
Revenue pax-kilometers (m RPK)	2,406	2,390	0.7%	14,468	13,991	3.4%
Available seat-kilometers (m ASK)	2,953	2,955	(0.0%)	18,075	17,805	1.5%
Load factor (%)	81.5%	80.9%	0.6	80.0%	78.6%	1.5
Caribbean / Indian,Ocean
Passengers carried ('000s)	238	222	7.3%	1,712	1,655	3.4%
Revenue pax-kilometers (m RPK)	1,730	1,608	7.6%	12,458	12,012	3.7%
Available seat-kilometers (m ASK)	2,024	2,032	(0.4%)	14,321	14,182	1.0%
Load factor (%)	85.5%	79.1%	6.3	87.0%	84.7%	2.3
Short and Medium-haul
Passengers carried ('000s)	5,010	4,791	4.6%	25,798	25,398	1.6%
Revenue pax-kilometers (m RPK)	4,168	4,001	4.2%	21,274	20,935	1.6%
Available seat-kilometers (m ASK)	4,985	4,936	1.0%	27,604	27,951	(1.2%)
Load factor (%)	83.6%	81.1%	2.5	77.1%	74.9%	2.2

Transavia activity

	June			Year to date
Total Group	2014	2013	Variation	2014	2013	Variation
Passengers carried ('000s)	1,035	961	7.6%	4,320	3,919	10.2%
Revenue pax-kilometers (m RPK)	1,934	1,854	4.3%	8,277	7,743	6.9%
Available seat-kilometers (m ASK)	2,130	2,037	4.6%	9,283	8,775	5.8%
Load factor (%)	90.8%	91.0%	(0.2%)	89.2%	88.2%	0.9

An Excel file containing historical Transavia traffic data is available on our website at http://www.airfranceklmfinance.com/en/content/download/19091/170429/file/Monthly%20Transavia%20traffic%20data%20since%20Jan%2012.xlsx

Cargo activity

	June			Year to date
Total Group	2014	2013	Variation	2014	2013	Variation
Revenue tonne-km (m RTK)	800	836	(4.3%)	4,933	4,932	0.0%
Available tonne-km (m ATK)	1,319	1,341	(1.7%)	7,710	7,827	(1.5%)
Load factor (%)	60.7%	62.3%	(1.6)	64.0%	63.0%	1.0
Americas
Revenue tonne-km (m RTK)	330	342	(3.4%)	2,065	2,035	1.4%
Available tonne-km (m ATK)	569	578	(1.7%)	3,208	3,228	(0.6%)
Load factor (%)	58.1%	59.2%	(1.0)	64.4%	63.0%	1.3
Asia / Pacific
Revenue tonne-km (m RTK)	309	327	(5.4%)	1,845	1,860	(0.8%)
Available tonne-km (m ATK)	408	419	(2.5%)	2,376	2,435	(2.4%)
Load factor (%)	75.8%	78.1%	(2.3)	77.7%	76.4%	1.3
Africa / Middle East
Revenue tonne-km (m RTK)	123	129	(4.3%)	776	793	(2.2%)
Available tonne-km (m ATK)	213	219	(2.7%)	1,319	1,357	(2.8%)
Load factor (%)	58.0%	59.0%	1.0	58.8%	58.4%	0.4
Caribbean / Indian Ocean
Revenue tonne-km (m RTK)	31	32	(1.7%)	216	210	3.0%
Available tonne-km (m ATK)	81	80	0.8%	542	545	(0.6%)
Load factor (%)	38.6%	39.6%	(1.0)	39.9%	38.5%	1.4
Short and Medium-haul
Revenue tonne-km (m RTK)	5	6	(2.6%)	32	34	(4.0%)
Available tonne-km (m ATK)	48	45	6.4%	265	260	1.6%
Load factor (%)	11.3%	12.3%	(1.0)	12.2%	12.9%	(0.7)