air KLM

air KLM

air KLM

Air France Corporate Communications KLM Corporate Communications
45, rue de Paris P.O. Box 7700
95747 Roissy Cedex, France 1117 ZL Schiphol Airport, The Netherlands
Tel: + 33 (0)1 41 56 56 00 – Fax: + 33 (0)1 41 56 84 19 Tel: [phone] – Fax: [phone]
Internet: www.airfrance.com/corporate Internet: www.klm.com
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Roissy, Amstelveen, August 31st, 2006
N 5125
FINANCIAL YEAR 2006-07
FIRST QUARTER 2006-07
 Operating income up 84.3% to 411 million euros,
 Excellent activity levels with strong growth in unit revenues in both passenger and cargo
 Adjusted operating margin of 8.0%, up 2.7 points
 Full year objective revised upwards
The board of Air France-KLM met on August 30th, 2006 under the chairmanship of Jean-Cyril Spinetta
to approve the financial statements for the First Quarter of 2006-07.
Consolidated figures
First Quarter to June 30th
(in millions of euros) 2006 2005 Change
Revenues 5,802 5,186+11.9%
Current operating income 411 223 +84.3%
Income from operating activities 388 228 +70.2%
Pretax income of fully integrated companies 310 149 +108.0%
Net income, Group share 244 112 +117.9%
First Quarter 2006-07: Operating income of 411 million euros, up 84.3%
ActivitywasdynamicintheFirstQuarter,inbothPassenger,whichsawa2pointincreaseinload
factor, and Cargo, which also recorded a slight improvement in its load factor. These robust levels of
activity were accompanied by a strong increase in unit revenues. Revenues rose 11.9% to 5.80 billion
euros, on capacity measured in EASK up 4.6%. Unit revenue measured in EASK was up 7.3%, and by
5.6% excluding the currency impact. Operating costs rose 8.6% to 5.39 billion euros. Excluding the fuel
charge, the rise would have been 5.5%. Unit costs, measured in EASK were up 3.8%, and fell by 0.6%
on a constant currency and fuel price basis.
The main variations in operating costs were as follows:
 The fuel charge amounted to 1.0 billion euros (+201 million euros), a rise of 24.8%, composed of a
volume effect of 3%, an unfavorable currency impact of 4%, a fuel price rise of 24%, and a positive
hedging effect of 6%;
 Employee costs rose 4.2% to 1.66 billion euros, mainly as a result of a 10% rise in social
contributions, linked to Air France’s contribution to the general redundancy insurance scheme.
headcount rose slightly to 103,100 (+1.2%);
 Aircraft costs (operating leases, chartering, amortization and maintenance costs) were up by 7.6%
to953millioneuros.Anincreaseinthenumberoffully-ownedaircraftandaircraftunderfinancial
leases impacted amortization charges, which were up 8.4%, while operating leases charge remained
stable;
 Commercial and distribution costs rose slightly by 1.9%. Commissions to travel agents continued
to fall, while other costs evolved in line with activity levels.
Air France Corporate Communications KLM Corporate Communications
45, rue de Paris P.O. Box 7700
95747 Roissy Cedex, France 1117 ZL Schiphol Airport, The Netherlands
Tel: + 33 (0)1 41 56 56 00 – Fax: + 33 (0)1 41 56 84 19 Tel: [phone] – Fax: [phone]
Internet: www.airfrance.com/corporate Internet: www.klm.com
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Operating income was up 84.3% to 411 million euros at June 30th 2006 versus 223 million euros a year
earlier. The operating margin (operating income over revenues) rose 2.8 points, from 4.3% at June 30th
2005 to 7.1%. The adjusted operating margin1 stood at 8%, up 2.7 points.
After other income and charges amounting to a negative 23 million euros, versus a positive 5 million
euros a year earlier, income from operating activities amounted to 388 million euros, up 70.2% year on
year.
Netinterestchargesamountedto46millioneurosversus60millioneurosayearearlier,a23.3%
reduction, in line with the decrease in net debt. Pretax income of fully integrated companies was 310
million euros compared with 149 million euros a year earlier.
Afterataxchargeof87millioneuros(52millioneurosatJune30th2005)andacontributionfrom
associatesofanegative0.3millioneuros(versusapositivecontributionof17millioneurosayear
earlier), net income, Group share amounted to 244 million euros, up from 112 million euros at June 30 th
2005, a rise of 117.9%. Earnings per share amounted to 0.91 euros (0.43 euros at June 30 th 2005).
Information by business
Passenger
During the First Quarter to June 30 th 2006, traffic rose by 7.7% on capacity up by 5.0%, leading to a 2
pointriseintheloadfactor to81.5%.Totalpassengerrevenuesamountedto4.61billioneuros,up
12.1% after a positive currency impact of 1.6%. Operating income more than doubled from 176 million
euros to 363 million euros.
First Quarter to June 30 th
2006 2005 Change
Total passenger revenues (in � m) 4,613 4,117 +12.1%
Revenues from scheduled passenger business (in � m) 4,345 3,859 +12.6%
Unit revenues per RPK (in � cts) 8.76 8.38 +4.5%
Unit revenues per ASK (in � cts) 7.14 6.66 +7.2%
Unit costs per ASK (in � cts)
Operating income (in � m)
6.47
363
6.29
176
+2.9%
+106.2%

imformation

Onaconstantcurrencybasis,unitrevenuesperRPKandperASKincreasedby2.9%and5.6%
respectively. Unit costs per available seat kilometer fell by 0.9% on a constant currency and fuel price
basis.
Cargo
Inanenvironmentwhichremainshighlycompetitive,thecargoactivitysawareboundintheFirst
Quarter, with a 3.7% rise in traffic for a 2.6% increase in capacity, leading to a 0.7 point improvement in
the load factor to 66.2%.
Total revenues for the cargo activity amounted to 729 million euros, up 10.5% after a favorable currency
impact of 2.5%. Operating income was 28 million euros verus 11 million euros at June 30 th 2005.
1 Operating income adjusted for the portion of operating leases corresponding to financial charges (34%)
Air France Corporate Communications KLM Corporate Communications
45, rue de Paris P.O. Box 7700
95747 Roissy Cedex, France 1117 ZL Schiphol Airport, The Netherlands
Tel: + 33 (0)1 41 56 56 00 – Fax: + 33 (0)1 41 56 84 19 Tel: [phone] – Fax: [phone]
Internet: www.airfrance.com/corporate Internet: www.klm.com
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First Quarter to June 30 th
2006 2005 Change
Total cargo business revenues (in � m) 729 660 +10.5%
Revenues from transportation of cargo (in � m) 674 610 +10.5%
Unit revenues per RTK (in � cts) 24.69 23.17 +6.5%
Unit revenues per ATK (in � cts) 16.34 15.18 +7.6%
Unit costs per ATK (in � cts)
Operating income (in � m)
15.51
28
14.76
11
+5.1%
+154.5%
On aconstantcurrencybasis,theyield(RTK)wasupby4.0%andunitrevenuesperavailableton-
kilometer (ATK) by 5.1%. Unit costs were down by 0.6% on a constant currency and fuel price basis.
Maintenance
Themaintenanceactivitygeneratedthirdpartyrevenuesof231millioneuros,up8.3%.Operating
incomedeclinedfrom14millioneurosto3millioneurosasaresultofthepostponementofcertain
contracts.
Other activities
Revenues fromotheractivities amounted to229millioneuros,ofwhich170millioneurosrelatingto
Transavia (+19%) and 45 million euros tothe catering business (+16.8%). Operating income amounted
to 17 million euros (22 million euros at June 30th 2005), of which 19 million euros was from Transavia
(18 million euros at June 30th 2005).
Financial structure: further reduction in net debt
Operating cash flow amounted 1.36 billion euros at June 30th 2006 while capital expenditure was 655
million euros.
The financial structure improved further, with net debt standing at 3.72 billion euros (compared with 5.5
billion eurosat June 30th 2005 and 4.38 billion eurosat March 31st 2006),while shareholders’ equity
amountedto8.21billioneuros(upfrom7.85billioneurosatMarch31st 2006)ofwhich1.18billion
euros relating to the valuation of derivative instruments.
The gearing ratio was thus reduced from 0.56 at March 31st 2006 to 0.45 at June 30th 2006.
Objective for Full Year operating income raised
On the basis of the current robustness of both activity levels and unit revenues, and on condition that
these trends persist,Air France-KLM’s objective for the Full Year is to generate a significant increase in
operating income compared to last year.
Air France Corporate Communications KLM Corporate Communications
45, rue de Paris P.O. Box 7700
95747 Roissy Cedex, France 1117 ZL Schiphol Airport, The Netherlands
Tel: + 33 (0)1 41 56 56 00 – Fax: + 33 (0)1 41 56 84 19 Tel: [phone] – Fax: [phone]
Internet: www.airfrance.com/corporate Internet: www.klm.com
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Forward-looking statements
The information herein contains forward-looking statements about Air France-KLM and its business. These
forwardlookingstatements,whichinclude,butarenotlimitedto,statementsconcerningthefinancialcondition,
resultsofoperationsandbusinessofAirFranceKLMarebasedonmanagement’scurrentexpectationsand
estimates.
Theseforward-lookingstatementsinvolveknownandunknownrisks,uncertaintiesandotherfactors,manyof
which areoutsideofAir France-KLM’s control and aredifficulttopredict. that may cause actualresults todiffer
materially from any future results expressed or implied from the forward-looking statements. These statements are
notguaranteesoffuture performance and involverisks and uncertaintiesincluding, among others: the expected
synergiesandcostsavingsbetweenAirFranceandKLMmaynotbeachieved;unanticipatedexpenditures;
changing relationships with customers, suppliers and strategic partners; increases in aircraft fuel prices; and other
economic,business,competitiveand/orregulatoryfactorsaffectingthebusinessesofAirFranceandKLM
generally.Additionalinformationregardingthe factors and eventsthatcould cause differences between forward-
lookingstatementsandactualresultsinthefutureiscontainedinAirFrance-KLM’sSecuritiesandExchange
Commission filings, including its Annual Reports on Form 20-F for the year ended March 31. 2006. Air France-KLM
undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information,
future events or otherwise.
THISFORM6-KREPORTISherebyINCORPORATEDBYREFERENCEINTOTHEprospectus
CONTAINEDINAIRFRANCEKLM'SREGISTRATIONSTATEMENTONFORMF-3(REGISTRATION
STATEMENTNO.333-114188).ANDSHALLBEAPARTTHEREOFFROMTHEDATEONWHICHTHIS
REPORTISfurnished.TOTHEEXTENTNOTSUPERSEDEDBYDOCUMENTSORREPORTS
SUBSEQUENTLY FILED OR FURNISHED.
Air France Corporate Communications KLM Corporate Communications
45, rue de Paris P.O. Box 7700
95747 Roissy Cedex, France 1117 ZL Schiphol Airport, The Netherlands
Tel: + 33 (0)1 41 56 56 00 – Fax: + 33 (0)1 41 56 84 19 Tel: [phone] – Fax: [phone]
Internet: www.airfrance.com/corporate Internet: www.klm.com