FIRST HALF FINANCIAL REPORT JANUARY-JUNE 2021 Société anonyme with share capital of €642,634,034 Registered office: 2, rue Robert Esnault-Pelterie, 75007 Paris Mailing address: Air France-KLM, AFKL.FI, 95737 Roissy Charles de Gaulle Cedex Paris Trade and Company Register No.552,043,002 Free translation into English for convenience only – French version prevails First half 2021 financial report Air France-KLM 1 CONTENTS 1. First half activity report .......................................................................................... 6 1.1. Activity .................................................................................................................... 6 1.1.1 Strategy .....................................................................................................................................6 1.1.2 Business review ..................................................................................................................... 17 Network business .............................................................................................................. 17 Passenger business ......................................................................................................... 17 Cargo business ................................................................................................................. 18 Transavia .......................................................................................................................... 18 Maintenance business ................................................................................................................ 19 1.1.3 Air France-KLM fleet .............................................................................................................. 22 1.1.4 Highlights ............................................................................................................................... 24 1.1.5 Outlook and subsequent events ............................................................................................ 30 1.1.6 Risk factors ............................................................................................................................ 31 1.1.7 Related parties ....................................................................................................................... 31 1.2. Corporate governance.......................................................................................... 32 1.2.1 The Board of Directors ........................................................................................................... 32 1.2.2 The CEO Committee .............................................................................................................. 35 1.2.3 The Group Executive Committee ........................................................................................... 36 1.2.4 Stock market and shareholder structure ................................................................................ 37 Comments on the financial statements ........................................................................................... 39 Key financial indicators ...................................................................................................................... 43 2. Unaudited interim consolidated financial information…………………………. 47 Consolidated income statement (unaudited) ......................................................................................... 48 Consolidated statement of recognized income and expenses (unaudited) .......................................... 49 Consolidated balance sheet (unaudited) ............................................................................................... 50 Consolidated statement of changes in stockholders’ equity (unaudited) .............................................. 54 Consolidated statements of cash flows (unaudited) .............................................................................. 55 Operating free cash-flow (unaudited) .................................................................................................... 57 First half 2021 financial report Air France-KLM 2 Notes to the consolidated financial statements (unaudited)………………………… ..58 1. Business description ................................................................................................................... 59 2. Significant events…………………………………………………...…….. ....................................... 60 2.1. Covid-19 and going concern ………………………… ........................................................ 60 2.2. Events that occured in the period………………………… .................................................. 61 2.3. Subsequent events ……………………………………………...……… ............................... 63 3. Accounting principles .................................................................................................................. 63 4. Change in the consolidation scope ............................................................................................. 64 5. Information by activity and geographical area ............................................................................ 64 5.1. Information by business segment ...................................................................................... 65 5.2. Information by geographical area ...................................................................................... 66 6. External expenses ..................................................................................................................... 69 7. Salaries and number of employees ........................................................................................... 69 8. Amortization, depreciation and provisions .................................................................................. 70 9. Other income and expenses ...................................................................................................... 71 10. Other non-current income and expenses ................................................................................ 71 11. Net cost of financial debt and other financial income and expenses ........................................ 73 12. Income taxes ............................................................................................................................. 74 12.1. Income tax charge ........................................................................................................... 74 12.2. Deferred tax recorded in equity (equity holders of Air France-KLM) ............................... 75 12.3. Effective tax rate .............................................................................................................. 75 13. Earnings per share ................................................................................................................... 76 13.1 Income for the period – Equity holders of Air France-KLM per share .............................. 76 13.2 Non-dilutive instruments ................................................................................................... 76 13.3 Instruments issued after the closing date ......................................................................... 76 14. Tangible assets and right-of-use assets .................................................................................. 77 15. Capital expenditures ................................................................................................................ 77 16. Cash, cash equivalents and bank overdrafts ........................................................................... 78 17. Pension assets and provisions ................................................................................................. 78 18. Equity attributable to equity holders of Air France-KLM S.A. .................................................. 79 18.1. Capital increase ............................................................................................................... 79 18.2. Breakdown of stock and voting rights .............................................................................. 79 18.3. Super-Subordinated Notes .............................................................................................. 80 18.4. Reserves and retained earnings ...................................................................................... 80 19. Return obligation liability and other provisions ........................................................................ 80 19.1. Return obligation liability and other provisions ................................................................ 80 19.2. Contingent liabilities ......................................................................................................... 82 20. Financial debt ........................................................................................................................... 83 20.1. Bonds ............................................................................................................................... 84 20.2. State loans ....................................................................................................................... 84 20.3. Other debt ........................................................................................................................ 85 20.4 Maturity analysis ............................................................................................................... 85 20.5 Credit lines .......................................................................................................................