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Air France-KLM: The transformational journey continues — September 2021

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In the aftermath of the 2008 Global Financial Crisis, Air France-KLM had been lumbered with an almost insurmountable €6.8bn mountain of debt and searing operational losses. It embarked on a process to restore profitability and financial health, and has spent the past decade deleveraging the balance sheet mostly from internally generated cashflow. By 2019 it had reduced its net debt/EBITDA ratio to an almost investment grade level of 1.5x (see chart), but over the decade had underperformed its European peers in terms of profits and returns on equity.

2012 2013 2014 2015 2016 2017 2018 2019 2020     2023 -8 -6 -4 -2 0 2 4 6 8   Net Debt/EBITDA test 5.4x 4.2x 4.0x 3.4x 2.9x 1.3x 1.4x 1.5x -6.8x 3.0x

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