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SECURITIES AND EXCHANGE COMMISSION
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
of November 25, 2004
KLM ROYAL DUTCH AIRLINES
Amsterdamseweg 55, 1182 GP Amstelveen, The Netherlands
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.)
| Form 20-F þ | Form 40-F o |
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
| Yes o | No þ |
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 Royal Dutch Airlines
|
Interim Results |
04/083
Combination of traffic growth and cost control results in growth of net profit
KLM FILES NET PROFIT OF EUR 131 MILLION
FOR FIRST HALF OF FISCAL 2004/2005
Amstelveen, The Netherlands, November 25, 2004 – KLM Royal Dutch Airlines today filed with Dutch and American authorities a net profit for the six months ended September 30, 2004 of EUR 131 million. This compares to a net profit of EUR 36 million for the corresponding period in 2003. In the first half of this fiscal year KLM continued to implement structural cost measures while at the same time traffic increased across the network. The high fuel prices were partly offset by a weak dollar and fuel surcharges. Furthermore, the partnership with Air France contributed positively to both traffic results and margins.
Following the successful completion on May 4, 2004 of the merger of KLM and Air France, KLM’s results, after having been adjusted to comply with generally accepted accounting principles in France (French GAAP), were fully consolidated by Air France — KLM for the five months ending September 30, 2004. The results included in this report (applying Dutch accounting policies and covering a period of six months) are therefore different than the KLM figures included in the results of Air France — KLM (applying French accounting policies and covering a period of five months). This report contains the financial information of KLM in accordance with article 7-sub (4) of “Besluit Toezicht Effectenverkeer” for the six-month period ended September 30, 2004. The information presented below has been prepared on a basis that is consistent with accounting policies and procedures applied in KLM’s audited consolidated financial statements for the year ended March 31, 2004.
| Six months ended | Six months ended | |||||||
| Airline operating data* |
September 30, 2004 |
September 30, 2003 |
||||||
Traffic (in millions of RTKs) |
5,650 | 5,025 | ||||||
Capacity (in millions of ASKs) |
7,034 | 6,406 | ||||||
Load factor (%) |
80.3 | 78.4 | ||||||
| * | KLM, KLM Cityhopper and KLM Cityhopper uk |
| Six months ended September 30 |
||||||||
| (in millions of Euro) |
2004 |
2003 |
||||||
Operating revenues |
3,367 | 3,036 | ||||||
Operating expenses |
3,111 | 2,971 | ||||||
Operating income |
256 | 65 | ||||||
Financial income and expense |
(63 | ) | (44 | ) | ||||
Results on sale of assets |
1 | 7 | ||||||
Results of holdings |
6 | 7 | ||||||
Results on sale of holdings |
— | 12 | ||||||
Pretax income |
200 | 47 | ||||||
Taxes |
(69 | ) | (11 | ) | ||||
Net income |
131 | 36 | ||||||
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Operating revenues for the six months ended September 30, 2004 showed a year-on-year increase of 11 percent to EUR 3,367 million, which was principally driven by higher traffic measured in revenue ton kilometers. SARS and the war in Iraq adversely impacted traffic in the corresponding period in 2003. Especially passenger traffic on routes to destinations in Asia showed a strong recovery in 2004 compared to the previous year.
Yield per ton kilometer traffic slightly increased by 1 percent compared to 2003. Adjusting for negative currency effects, yield per ton kilometer traffic improved by 4 percent. The increase in traffic by 12 percent, in combination with an increase in capacity by 10 percent, resulted in an improvement of the load factor by 1.9 percentage point.
Total operating expenses for the six months ended September 30, 2004 showed a year-on-year increase of 5 percent to EUR 3,111 million. The increase reflects a 10 percent capacity increase (measured in available ton kilometers), and the higher fuel prices. However, the increase was mitigated by the continued implementation of KLM’s cost savings program, (reducing the Group’s manageable unit cost – being unit cost excluding currency and fuel price effects — by 8 percent), and the weak dollar.
KLM reported an operating income of EUR 256 million for the six months ended September 30, 2004, which compares to EUR 65 million last year.
Financial income and expense showed a sharp increase compared to last year, mainly the effect of revaluation differences on derivatives, that are held for risk management purposes, and that do not qualify for hedge accounting.
Results on sale of holdings for the six months ended September 30, 2004 were nil. Last year’s figures were positive amongst others due to the sale of the KLM’s stake of 9 percent in TUI Nederland N.V.
The financial information presented in this report is unaudited.
Amstelveen, November 25, 2004 |
The Board of Managing Directors | |||
AMS/DR/YE
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| KLM FILES NET PROFIT OF EUR 131 MILLION FOR FIRST HALF OF FISCAL 2004/2005 | ||||||||
| SIGNATURES | ||||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| KLM Royal Dutch Airlines |
||||
| Date: September 25, 2004 | By /s/ R.A. Ruijter | |||
| Name : R.A. Ruijter | ||||
| Title : Managing Director & CFO | ||||
| By /s/ J.E.C. de Groot | ||||
| Name : J.E.C. de Groot | ||||
| Title : SVP & General Secretary | ||||