Air France-KLM SA (AF) Earnings Call Transcript & Summary

[Interpreted] Ladies and gentlemen, dear shareholders, first of all, I would like to thank you for being here today and I would like to welcome you for this annual meeting that is very important to us. The year 2024 has been a year with success and important milestones for Air France-KLM, which results reflect the continuous transformation plans that are conducted within the group. Our turnover rose by 4.8% versus 2023, and our operating income reached EUR 1.6 billion, with an operating margin of 5.1%. We built this performance together as a group throughout all our business lines, transport of passengers, cargo transport and our activity of aeronautics maintenance. Last year, Air France-KLM and Transavia transported approximately 98 million passengers. With cargo, our teams knew how to address the strong demand on key destinations between Asia and Europe. With maintenance, Air France Industries, KLM Engineering and Maintenance won new big contracts. Flying Blue, which will celebrate its 20 years anniversary in 2 days, will soon cross the threshold of 30 million members. This is all the more impressive that we are involving still in an environment, geopolitical environment, that is very complex. Conflicts in Ukraine and Middle East, closing of the Russian airspace and of some African regions in capacity to serve some countries, such as Mali or Burkina Faso. These current events weigh on our cost and our revenue without jeopardizing our financial road map that is very demanding. The year 2025 started well with an operating income of the first quarter that is growing for EUR 161 million versus last year. Throughout this quarter, we as well have revealed the new suite, La Première Air France by Air France, a key step in the upgrading of our offer. In 2024, while Paris was welcoming the Olympic Games and Paralympic Games, Air France-KLM celebrated its 20 years of existence on the market. 20 years to contribute to the dynamic growth of France and the Netherlands. Our group is today a leading actor, generating, respectively, 1.9% and 2.3% of the GDP French and Dutch, and promoting and creating over 820,000 jobs. Beyond the numbers, these are regions that we were linking together and know-hows that we were growing. Air France-KLM has also an ambition of decarbonation. We all know that the future of our sector is based on its capacity to change deeply to reduce its environmental impact. This is showing by the continuous renewal of our fleet with the introduction of aircraft -- new generation aircraft that consume up to 20% SAF, less than their predecessors. In an ambitious policy of supply in SAF in 2022 and 2023, our group was the first user in the world of SAF, representing, respectively, 17% and 6% of the world production. Today, the air sector has entered a new phase of consolidation in Europe. Air France-KLM bought into the SAS Capital with 19.9% shares and we have started cooperation with this company. And our group intends to play a key role in the European skies and offering our clients new travel opportunities. Finally, in an environment that is more and more uncertain, our corporate purpose has never been as precious. Facing the world instability, the group Air France-KLM links everyday peoples and cultures serving 320 destinations in 90 countries. To conclude and on a more personal note, this general assembly is, to me, very particular, very special. After 7 years at the presidency of Air France-KLM, marked by very intense moments, unprecedented challenge and many, many encounters, my mandate will come to an end after this present general assembly. I am moved and proud of the journey we have made together since 2018, proud to have supported a group that even if it's the most difficult moment, and I'm thinking about the health crisis, knew how to stay united, resilient and determined to build its future. I am proud of the management team in place and of its 78,000 employees of the group. Proud of the leadership of Ben Smith, who knew how to give back to the group, Air France-KLM, this place of champion in the European skies. Dear shareholders, your unwavering support is key. You can count on the mobilization of the women and the men that animate the group and its companies as well as the personal commitment of the members of the Board and of your future president, Florence Parly, and of the management team. I would like to thank you, and I will now proceed to the constitution of the bureau of the assembly that I will chair. Madam for the agency of the participation of the French state and Madam Barbara Svet for the Dutch states have accepted to assure the functions of scrutineers, and I'd like to thank you for that. Alexandre Boissy, our General Secretary, will the secretary of this assembly. The statutory auditors, Amélie Jeudi de Grissac, Valérie Besson and Philippe Vincent are present as well. Mr. Eric Dupre will present the reports in the name of the College of the Statutory Auditors. As we used to do, we have also asked the help of 3 bellies to check on the compliance of the assembly. And now we'd like to give the floor to Alexandre Boissy to proceed.

[Interpreted] Thank you, dear Chairperson. I'm happy to inform you that the legal formalities have been completed. The meeting notice and convocation notice have respectively been published on the 30th of April and 14th of May 2025. All documents required by law have been made available. They're available at the desk and on the website. And every shareholder has received the notice of meeting and convocations, and all these documents have been published on our website. Furthermore, we have received requests prior to the assembly. So the quorum stands at 59.12%, allowing to signal that we've reached the 25% of voting shares, and we can deliberate for extraordinary and ordinary resolutions, which will duly review. Thank you. And over to Anne-Marie Couderc.

[Interpreted] Thank you, Alexandre. I declare that the assembly is duly constituted and it can deliberate. I propose not to read the full report of the Board, the resolutions and the reports of the statutory auditors that were provided to you. Considering the agenda of our assembly, Alexandre Boissy will remind us of the resolutions that we will be voting on. Our General Director, Ben Smith, will present the activity of the group throughout the fiscal year 2024, the strategic orientations of Air France-KLM and the CSR strategy of the group and the conducted interims for the previous year. Our financial Director, our CFO, Steven Zaat, will tell us about the financial results of 2024. After their presentations, I will present the works relative to the governance of the group. And Alex Wynaendts, President of the Compensation Committee, will take stock of the compensation of the managers and Board members. Then I will invite Mr. Eric Dupre, who is representing the College of Statutory, to present the reports. And then we will answer your questions, before we move on to the vote of the resolutions in the presence of Marjan Rintel and [indiscernible]. I now give the floor to Alexandre Boissy who will now summarize the resolutions that you will be voting on.

[Interpreted] Thank you, dear president. I will take you through the resolutions, which have been made available on the on our Internet website. Ordinary resolution 1 to 3, approval of statutory accounts, consolidated accounts of 2024, allocation of results. Resolution 4 and 5, approval of agreements and regulated commitments. Resolution 6 to 12 on appointments and renewal of Board directions. Resolution 13 to 18, voting on remuneration of directors for 2024 and on the remuneration policy for 2025. Resolution 19, approval given to the Board to effect and to operate on shares of the company. Resolution 2021, modification of Article 2 of the company and Article 20 related to the deliberation. Resolution 22 to 30 proposals with view to proceeding with capital increase Resolution 31 authorization given to the Board with regards to the reduction of capital and Resolution 32, powers of authorities for the formalities.

[Interpreted] Thank you, Alexandre. I would like to go back to -- on the highlights of 2024 throughout the video, before giving the floor to Ben Smith. [Presentation]

[Interpreted] I will now give the floor to our CEO, Ben Smith. Thank you.

[Interpreted] Thank you, Anne-Marie. Good afternoon, ladies and gentlemen. Dear shareholders, I'm delighted to be with you today. We're very proud of our 2024 results, and I'm here with you to take you through our main strategic achievements and answer your questions. Restating our purpose, our ambition is clear: To lead the transformation toward a more responsible European aviation industry, one that connects people in an increasingly sustainable way so that the future generations can continue to explore the world. At Air France-KLM, we are not just transporting passengers, we unite people together for the world of tomorrow. I'd like to recognize the tremendous collective effort that enabled us to deliver a strong performance in 2024. In 2024, we welcomed 98 million passengers, a nearly 5% increase from the previous year. Our 78,000 strong team demonstrated exceptional commitment, and I'm proud that our group continues to be recognized as a leading employer in the transport sector. Our network connects over 320 destinations around the world via our 2 European hubs, in Paris at WestJet Charles de Gaulle; and Amsterdam at Schiphol Airport. Our maintenance team serviced more than 3,000 aircraft, and our cargo division transported close to 1 million tonnes of valuable and time-sensitive goods. As you can see, the passenger network business, maintenance and Transavia, all contributed meaningfully to a group revenue of EUR 31.5 million -- sorry, EUR 31.5 billion, an increase of 5% year-over-year. These results reflect the consistency in execution of our strategy and the passion of people working for the Air France-KLM Group. Since 2011, we steadily improved our operating margin from nearly 0% in 2011 to over 5% in 2024 despite significant one-off events, such as the Olympic Games in Paris, which had a direct impact on our performance. Adjusted for these external factors, we estimate that our operating margin would have approached almost 6% in 2024. Our goal is to exceed an 8% margin during the 2026, 2028 period, positioning ourselves among the leaders in European aviation. Our strategy is built around 6 key pillars: strengthening our market position and business models, enhancing our profitability, maximizing customer satisfaction and enhancing brand value, improving employee engagement and satisfaction, leveraging technology, innovation and data, leading the way towards more sustainable aviation. These pillars drive both our financial performance and our long-term value creation road map. So let's now turn to our customers. Across our 3 brands, Air France, KLM and Transavia, we continue to elevate our service and product offering. From fair segmentation at Transavia, Basic Plus and Max, to upgraded economy and premium economy, cabins and the award-winning business class on both KLM and Air France, our products are designed to meet the diverse expectations of all our customers. At the very top end, the recent launch of Air France's new La Première suite, combined with its exceptional ground service at WestJet Charles de Gaulle, which was unveiled last year, reinforces our leadership position in the luxury travel segment. These efforts are translating into higher customer satisfaction and increasing demand for our premium products in key markets. They earned us several accolades again this year, notably from Skytrax and Apex. Our unique European positioning is anchored by our 2 hubs at Oasi and Schiphol. This setup underpins our balanced globally diversified network and limits exposure to regional volatility. For instance, despite the context of the increased U.S. tariffs, we can cautiously state that inbound demand from the United States currently remains strong. Moreover, our flexibility allows us to redeploy capacity toward other regions showing robust appetite for European travel. France and Paris, in particular, remains the world's top inbound tourism destination, boosted by the worldwide visibility generated by the highly successful Olympics in 2024. Both Air France at -- Charles de Gaulle, and Transavia at Paris-Orly are therefore well positioned to meet the needs of our wide range of clients from frequent business customers to occasional leisure travelers. Firmly positioned as a leader at Schiphol, a major connecting gateway, KLM enhances the group's network with a distinctive portfolio of destinations. Our geographic positioning is key to our business model and give us a unique strategic advantage, especially in the long-haul segment. On the mergers and acquisition side, 2024 marked a pivotal step in our role as a consolidator in European aviation. We finalized the acquisition of a 19.9% noncontrolling stake in SAS, our first acquisition since the foundation of the group 20 years ago. I want to thank all the teams at Air France-KLM and SAS who contribute to the success of this project. This collaboration is already showing positive results, generating nearly EUR 70 million in revenue through commercial synergies within just 8 months. SAS' integration into Sky team broadens our network and strengthens our presence in the high-yield Northern European market. This milestone not only deepens our strategic footprint, but also opens new opportunities for future consolidation in line with our long-term vision. Regarding our commitment to sustainability, in 2024, the group's performance received strong external recognition, a gold medal from EcoVadis, placing us in the top 5% of companies assessed; an improved MSCI ESG rating, BBB; continued Prime status from ISS ESG; and a B rating for Climate Action from CDP. In addition, we've also been ranked by Transport Environment, the highest among peers for climate efforts, especially in stainable aviation fuel use. These independent assessments attest to the credibility of our decarbonization strategy and the real progresses we've made. Of course, the path towards net zero by 2050 remains very challenging. Our decarbonization strategy is built on 5 key pillars: fleet renewal, sustainable aviation fuel, operational efficiency, business model transformation -- efficiency. On the fuel -- on the fleet renewal part are -- and SAF together, that accounts for more than 2/3 of our decarbonization potential by 2030 and require significant investment. It's important to underline the critical importance of collective action to maximize our impact when it comes to the global challenge of decarbonizing the aviation industry. Any efforts we make should therefore receive strong backing, from stakeholders across the board from airlines and related businesses to government and independent organizations, facilitating the adoption of new standards. As we advance together with other airlines, we are confronted with headwinds that further increase the difficulty of our respective already-complex decarbonization journeys. These headwinds, among others, include delays in fleet renewal and engine availability issues, together hampering the full operational capacity; geopolitical tensions that require the avoidance of certain geographic areas, negatively affecting the flight times and consequently increasing the fuel burn; and the need to further advance with the development of a single European sky, contributing to flight efficiency and positively impacting the respective carbon footprint of all the players in the industry. Also on, regrettably, SAF development still faces a chicken or egg dilemma on both the demand and supply sides. What's needed is a clear regulatory framework, stable standards, incentivized demand and large-scale production that enables affordable pricing and a level playing field across the world. That's why we're working hand and heart with others across the industry to try to move the needle through initiatives like Project SkyPower and the CSF New Energy Systems Working Group, leveraging our industrial ecosystem to drive progress. As I mentioned, fleet renewal remains central to our decarbonization strategy. Today, a new generation aircraft represents 28% of our fleet, which is up 7 points from last year. These aircraft are less noisy, more fuel efficient, while also improving operational reliability and cost efficiency across the entire Air France-KLM group. Beyond our own efforts, we are actively involving our customers in the energy transition. We were among the first industry actors in Europe to offer SAF options for both passengers and cargo clients via voluntary contributions, La Première's extra SAF fares and our GoSAF cargo platform. We maintain a strict a SAF purchasing policy, focusing on second-generation fuels that do not compete with the food chain. Since 2024, we also proactively showed customers the estimated CO2 initiatives at the time of booking, improving transparency and empowering customers to make more sustainable choices. When it comes to the regulatory and public policy landscape, these are particularly challenging times for a company like ours, a point I've already voiced publicly and directly to key's stakeholders and policymakers. We urgently need a coordinated European aviation strategy that ensures Air France-KLM can remain a job creator and driver of economic growth for years to come. Unfortunately, the current reality is that regulatory -- is holding us back. Within Europe, we face a patchwork of national level fees and taxes in both France and the Netherlands that create unnecessary burdens. Meanwhile, EU-specific regulations, such as the emissions trading system and SAF mandates mostly applied to only European carriers, putting them -- putting us, putting them, all of us, at a competitive disadvantage compared to our non-EU counterparts. At the same time, non-EU airlines often benefit from easier access to capital, low tax regimes and location-based cost advantages, none of which are balanced over the aviation agreement signed in recent years. This uneven playing field undermines fair competition, increases costs for EU airlines and accelerates the shift in intercontinental traffic away from European hubs to non-EU ones, ultimately threatening both our climate ambitions and Europe supply chain resilience. It's time for France, the Netherlands and the European Union to better coordinate their efforts and recognize the strategic importance of European aviation. Our workforce and assets play a vital role in economic growth, resilience, sovereignty and connectivity and should be treated as such in policymaking. To conclude this section, 2024 was a year of strong execution and strategic progress. We leveraged our geographic positioning and network strength, continued our product evolution and premiumization, and advance on our sustainability journey. Our foundations are solid, with the continued dedication of our people. And with the support of our stakeholders, we are well equipped to move forward confidently and responsibly. I'd like to say thank you to all our employees, many who are here in this room today, and our shareholders, as well as our industry partners, stakeholders and, of course, customers at Air France-KLM Group, whose continuous drive and support allow us to build together a more respectful and sustainable future of European aviation. Thank you.

[Interpreted] Thank you very much, Ben. Thank you for your very clear presentation and for giving us the prospects ahead of us. I will now yield the floor to Steven Zaat, our CFO. He will tell you about group 2024 financial statements. My dear, Steven, you have the floor.

[Interpreted] Thank you, Madam Chair. Good afternoon, ladies and gentlemen. It is with pleasure and gratitude that I stand before you today presenting the 2024 results at this Annual General Meeting. Let me say that 2024 was not an easy year. We encountered a difficult start of the year due to distorted operations, resulting in high disruption costs. The second quarter, we recovered pretty well and we had almost the best second quarter in our history. But unfortunately, we saw then the first negative impact of the Olympic Games, which further had a negative impact on the third quarter. But most importantly, we finished the year very strong with an improvement of the operating result of almost EUR 500 million compared to '23. Despite the one-off impacts, and I will come back on that later, we were able to post robust results and worked further on our strategic road map, which is setting our solid base for our future. In '24, we welcomed almost 100 million passengers, a growth of 5%, which increased our revenues to more than EUR 31 billion, which is the highest revenue in the history of our group. During '24, we reimbursed EUR 1.1 billion of core debt related to social charges, wage taxes and pensions. Corrected for these payments, the recurring adjusted operating free cash flow improved by more than EUR 300 million. This underlying positive free cash flow shows our cash flow generation capability from our businesses and supports our target for substantial operating free cash flow delivery when all existing COVID payments are repaid. The net income amounted to EUR 0.5 billion, growing our equity further to EUR 800 million. And one of our main KPIs is our leverage and our net debt or our debt, minus our cash divided by EBITDA, we reached a level of 1.7 by the end of '24, which is in line with our goal between 1.5 and 2. And let's go to the performance of our businesses. Let's start with our Passenger Network business. The revenues of our Passenger Network were 3% higher than in '23. We were able to further increase the load factor of our planes and especially the premium cabins developed strongly in terms of revenues. We had some downturn in pricing in the lower-yield classes coming from the impact of the Olympic Games. Our cargo business had a tough first quarter in '24, with a decline in unit revenues of more than 26%. During the year, we almost recovered it all, and we ended the year strongly with a unit revenue increase of more than 20%. This rebound was driven by traffic from Asia, and we adapted our full-freighter network towards Asia in the second half of the year. Going to Transavia. Transavia revenues increased by 15% due to an 8% increase in capacity and a 7% increase in unit revenue. This unit revenue increase was driven by a higher yield, thanks to the successful implementation of paid hand luggage. The operating result was EUR 3 million positive, but Transavia is still taking over slots from Air France in Orly, contributing to the improvement of the Air France network results. On top, there was also a negative impact of EUR 40 million coming from the Olympic Games. It is good to see that despite all this, Transavia improved the results by EUR 100 million improved compared to the last year. Our maintenance business further strengthened their market position. The external revenues grew in with 24% despite the ongoing supply chain disruptions. The operating result of maintenance amounted to EUR 170 million, mainly driven by a very profitable engine business. We are very well positioned, especially by the long-term contracts on this new generation aircraft, and we will increase further our external revenues and profitability further in these segments in the coming years. Let's briefly review the challenges of '24 and consider those we encounter in '25. Operational challenges had a considerable effect on our productivity and resulted in a substantial customer compensation expenses. The impact on our bottom line was at least EUR 300 million. Then we had the Olympic Games in Paris in 2024, which was a fantastic event, but not for the shareholders. It costed Air France-KLM EUR 200 million in unit revenues and EUR 50 million in unit cost. And we had the difficult Air France cargo implemented on IT2, which cost us also around EUR 50 million. In total, there were EUR 600 million of headwinds in the year '24. Then before we started the year '25, we knew that we would be confronted with some external headwinds in the current fiscal year. One was coming from the increase of the French Aviation Tax, which we estimate to impact our revenues by EUR 90 million to EUR 150 million. Then Schiphol decided to increase again its tariffs, this time by more than 40% in 1 year, an increase of EUR 110 million on our cost. We will be able to offset some of these increases via higher ticket prices, but it will significantly impact KLM's competitive position, especially for the connecting passenger, which can choose which airport to fly and with some airports even free of these charges. I want to stress again that after an increase of more than 40% after COVID, another 40% is insane, and it hampers the profitability development of KLM and, therefore, the network development. It will make the Netherlands, at the end of the day, smaller and a less attractive place to do business. As a result, European headquarters will opt for countries with better connections. In recent years, several major companies have already left the Netherlands due to the worsening of the business climate. To summarize, the net impact of all the earlier mentioned challenges in '24 and '25 is that Air France-KLM should improve the operating result for the year '25, at least with EUR 300 million. The first quarter showed already the first signs with an improvement of EUR 161 million. Moving to the current year. We will grow further our long-haul and short medium-haul capacity by 3% to 5%, and Transavia, we expect to grow by 10%. So that brings the total capacity increase 4% to 5% versus '24. We expect a slight increase in unit cost due to factors beyond our control, including the already mentioned Schiphol tariffs and the higher air traffic charges in Europe. On top, we will continue with the premiumization of our cabin. We will further grow our business class and we will grow the first class at Air France with 5%. We will enlarge the capacity of the highly profitable premium economy in our planes. Air France will grow this segment by 7% in '25. At KLM, we are just at the start where we finished in November '24, the implementation of premium comfort. It will grow in '25 with a spectacular 33% growth. The premiumization will increase the unit cost, but it goes hand-in-hand with higher unit revenues further grow our bottom line. The inflation around this will be tackled by the continuing of our transformation program. KLM launched the Back on Track program in October '24, and we will continue the transformation of Air France. Let's then dive into our capital expenditures. We estimate to invest an amount between EUR 3.2 billion and EUR 3.4 billion. 80% of this amount is related to the fleet and fleet-related items to support our trajectory to further decarbonize, and at the same time, support our bottom line growth. And finally, as already addressed, we maintain our guidance of leverage between 1.5 and 2x. As we close out 2024, I would like to repeat our financial targets for the medium term. One, an operating margin above 8%. Two, a significantly positive adjusted operating free cash flow. Three, a reduction of our unit cost as a result of our ongoing transformation efforts, fleet modernization and smarter operation. And four, being an investment-grade company. Our whole management team is fully committed to delivering on these targets as they are a result of a bottom-up process. A large part of our shareholder base consists of individual shareholders. If you own at least 5 shares, you could register yourself as a member of the individual shareholder club. This club has almost 3,000 members and is still growing. The members receive on a regular basis newsletters and private events have been organized. We renewed in February '23, the Individual Shareholder Committee, the CCAI, with 10 new members who meet the Air France scale management regularly. We will introduce the members of the CCAI during the Q&A session. If you haven't registered yourself to the club yet, please visit our website. In December '23, the group has offered shares to the employees in 20 countries. In total, 17,000 colleagues have participated in this employee share plan, which was 22% of the total workforce of France at that time, bringing the total employee shareholding above 4%. We are happy with the confidence and commitment to our trajectory and having our colleagues in the group's shareholding. I really would like to say a big thank you to all shareholders for your support in 2024. Thanks for your attention.

[Interpreted] Thank you. Thank you, Steven. Thank you very much. I will now present our group's governance, before yielding the floor to Alexander Wynaendts to address remuneration aspects for our corporate company offices. As you are aware, since 2018, governance has been structured around a separation of the functions of the Chair of the Board and the CEO, which helps us clearly distribute and coordinate their respective roles. The dynamic of our Board relies on 4 specialized committee. They play an active and precious role in preparing Board sessions. The Audit Committee made up of 7 members, chaired by Isabelle Guichot; the Sustainable Development and Compliance Committee made up of 6 members, chaired by Anne-Marie Idrac; the Remuneration Committee made up of 6 members, chaired by Alexander Wynaendts; and the Appointment and Governance Committee made up of 3 members that I chair. The year 2024 has proven how our governance can be efficient and relevant in especially when it comes to implementing the European CSRD directive, the Corporate Sustainability Reporting Directive. Governance linked to sustainable development is carried out at the highest level of the group. The Board, the CEO committee as well as the Executive Committee of the group consider sustainable development issues as one of our priorities and rely on the works carried out by the decarbonizing committee. This year was especially marked by the drafting of our very first sustainability report, with a major involvement of the Board as well as the Audit Committee and the Sustainable Development and Compliance Committee. Let us now turn to the composition of our Board. On the 31st of December 2024, there were 19 Board members, including 7 independent Board members. And please note that each committee is chaired by an independent board member. 46.67% of women, excluding employee board members. Four board members representing employees and employee shareholders. Your Board is gathering diverse and complementary skills and experience, including an in-depth knowledge of the air sector, finance, executive management, as well as geopolitical issues, crisis management or CSR issues. Let us now turn to the developments of the Board composition. In 2025, 7 Board members' mandates, excluding Board members representing employees, are coming to an end. To ensure got good governance, the staggered Board approach that has already started for the mandates within our Board is continuing. I would like to submit for your approval the renewal of 4 Board members whose mandates are coming to an end. Gwenaëlle Avice-Huet for a 2-year term. Leni Boeren for a 4-year term. Delta Air Lines, whose permanent representative is Alain Bellemare, for 4 years. And finally, Anne-Marie Idrac for a 2-year term. The mandates of the other 3 -- other 3 more members are also coming to an end at the close of the present meeting. James Wan, Isabelle Guichot and myself, which will then give way to 3 appointments. The first appointment is the following. Following James Wan's mandate coming to an end, a Board member of our shareholder and commercial partner, China Eastern Airlines, we suggest that you appoint in his stead, Qingchao Wan, Vice President of China Eastern Airlines for 4 years. Second,possible appointment, the independent Board member of our Board. She's been there for 12 years, Isabelle Guichot. Her mandate has come to an ends. She was the Chair of the Audit Committee. We suggest that you appoint instead, Isabel Gish, CEO of the SMCP Group, as an independent Board member for 4 years. And subject to the approval of resolution #9 on her appointment, the Board has decided, considering her experience to appoint her Chair of the Audit Committee in the set of Isabelle Guichot. Third appointment. After 9 years spent at the Board, my last mandate of the year is also coming to an end at the close of this general meeting. So we suggest that you appoint today for 4 years, Véronique Penchienati-Bosetta, the Vice Managing Director of Danone Group, as an independent Board member. Besides, Pierre Lishan, in the stead of Didier Idrac; as well as Terence Tilgenkamp have been appointed by the French and European Works Council as Board members, representing the employees for 2 years at the close of this meeting. I would like to extend my warm thanks to Isabelle, James and Didier for all their contribution to our Board in the past few years. Allow me to express my special thanks to Isabelle Guichot, who, for the past 12 years, has borne key responsibilities as the Chair of the Remuneration Committee and then as the Chair of the Audit Committee. Finally, following a proposal from the Appointment and Governance Committee, the Board who gathered on the 29th of April, appointed Florence Parly as the Chair of the Board, with effect at the close of this general meeting. The Board has, honestly,expressed confidence towards her. On top of our long-standing experience, her personality, energy and resolve, she will help our CEO, Ben Smith, to rise to the challenges and make our group successful, and I congratulate her already. I will now invite Alexander Wynaendts to join me. He will make your presentation on remuneration aspects, which will be put to your vote.

[Interpreted] Thank you, Anne-Marie. Dear shareholders, as chair of the Quotation Council of Board, I'm going to be presenting the mean components of compensation of the members for '24 and the policy of compensation proposed by the Board for 2025. These components are detailed in Chapter 2 of the single unique registration document '24 and we will -- you will be voting on them in the Resolution 13 to 18. Starting off with -- of the members. The total amount of compensation of the members for '24 is EUR 837,500. It was decided upon by the Board in the limit of the annual global amount of EUR 950,000 approved by your general assembly on the 5th of June 2024. Moving now to 2024, compensation of the chair of the Board and of the director general. The received in 2024, compensation set annual fit gross of EUR 200,000 and had no variable compensation. The annual gross fixed remuneration has been set by the Board on the recommendation of the Remuneration Committee at EUR 350,000 for 2024 remuneration policy. But whilst recognizing the necessity to set the level of remuneration at EUR 350,000 for their position, the President said to the Board that they wanted to retain the level of compensation for 2024 unchanged since she was appointed in 2010. With regard to the CEO, the compensation paid in 2024 was made up of the following components: a set remuneration of EUR 1.044 million, an annual variable remuneration of an amount of EUR 985,880 for the full year 2024 and a long-term remuneration corresponding 23,437 performance units. In line with the long-term plan 2021, 2023, the performance of which over 3 years has attained 48%, which represents EUR 252,182. We remind you that following from the conditions associated to the state aids the amount of the remuneration, long-term variable of the CEO for the long-term plans attributed between 2016 and 2020, was paid during the fiscal year '24. You'll find the details of that section 25 of the unique registration document variable remuneration provided given in 2024, was EUR 1,524,760 for the annual variable remuneration, which represents 146.05% of the fixed remuneration graded according to the threshold set in the policy approved by the last general assembly. And for the long-term variable remuneration of 196,023 units of performance in the line with the long-term plan '24/'26 corresponding to an amount of EUR 2 million which depends upon conditions. The performance and presence over 3 years, more precisely, the amount of the annual variable remuneration attributed in 2024 corresponds to the detailed performance on the table on the screen here. The performance of quantitative criteria linked to the financial objectives of the group was set at 81% of fixed compensation, and the criteria linked to extra financial objectives of the group were set at 65.05% of the fixed remuneration, a total of 146.05% of the fixed remuneration. Moving on now to the remuneration policy for 2025. For 2025, we are proposing that the global envelope of remuneration of the members move from to EUR 1.550 billion. This amount will be spread out amongst the members, also respecting the application of the fixed and variable parts in line with their presence. This evolution of the remuneration of the members that takes into account the big size or the substantial size of the Board. And the objective thereof is to be aligned with the practices existing on the market to reinforce the attractivity levels of the Board and to reflect the increase and the level of responsibility of the members within Board and its different committees, notably those on sitting on the Audit Committee. The Board has decided to maintain the policy of remuneration of the chair voted on by the general assembly '24, which is an \annual fixed remuneration of EUR 360,000. The policy of remuneration voted by our general assembly for 2025 will be applicable to the current and to the future chair of the Board. [Foreign Language]. No variable remuneration component is scheduled for. So with regards to the CEO, the Board has decided to maintain the remuneration policy voted, on the occasion of the shareholders' meeting in 2024, namely, a fixed remuneration of EUR 1.044 million, an annual variable remuneration as a target with 150%. And of the objective achieved and 180% of the maximum fixed in case of objectives being exceeded. And long-term remuneration, subject to achieving certain demand conditions or 3 years, which demand remains an changed in 2018 for a total amount of EUR 2 million. Furthermore, an additional pension regime and [indiscernible] last year will be maintained. And over and above this, the annual variable remuneration be evaluated on the basis of performance criteria -- up to 60% and up to 40% of extra financial objectives. This performance criteria have been decided appointed by the Board, so to optimize the alignment of shareholders' interest and to simplify the structure was strengthening day-to-day share of the targets. And finally, the CEO received a long-term variable remuneration of an unchanged amount of EUR 2 million payable in shares and subject to the achievement of performance conditions abated over a period of 3 years. Performance conditions on long-term basis, '25/'27, centered on the performance of the group and a significant weight on the CSR performance. Yes, thank you, dear shareholders, for your attention.

[Interpreted] Thank you. Dear Alex, and thank you for all the work that you've done on the presidency of this Compensation Committee. I would like to thank you for your attention on this long session of Governance and Compensation. And I'd like to invite now Mr. Eric Dupre, who is the representative of the College of the Statutory Auditors, who will present their reports.

[Interpreted] Thank you, dear chair. Dear shareholders, good afternoon. On behalf of the college of auditors, Pricewaterhousecoopers and KPMG. I'm hired to deliver a presentation on a mission entrusted to us on financial information and sustainability information. With regards to financial information, we have drafted or developed reports included in the universal regulation document and in the convocation brochure. These are namely the annual statutory accounts reports, Pages 498 to 501 of the Universal document, considerates report, pages of 471 to 481 of the universal registration document. Regulated conventions or agreements pages 502, 546 for the Universal -- Document. And capital operations report, [ 638 ], 672. On the complication brochure sustainability information, we issued one report, pages 368 to 371 of the Universal Registration Document, and we'll not dwell upon this, the details of this report, but I will focus on the highlights. Regarding our strategic accounts consolidated in annual reports, here to give you assurance that they do not entered any significant normally reports highlight key points of those -- audits for the highlights that we deem as significant to base our opinion upon. Consolidated accounts, we have the key as key points of the audit. And there's a few terms, recoverability of the aeronautic assets, a big condition of deferred assets, taxes and French tax group, and recognition of revenues and issued and used for annual statutory accounts, the assessment of participation, as well as our accounts payables as -- conclusion. So we certify unreservedly at annual accounts and consolidated accounts of the group are sound. And our report include, our technical observations. And in the cash flow consolidated accounts, one position changed as well as one accounting method changed related to commitment -- on statutory accounts. Regarding our special reports on regulated conventions or agreement to these conventions have been the subject of a prior authorization from your Board, have been submitted under the fourth and fifth resolution for approval. The focus on a new joint venture agreement between Air France-KLM and China Eastern Airlines, and the amendment to ancillary agreements with the Delta Air Lines and Virgin Atlantic joint venture. Our report also mentions the agreements taken and approved. So prior to executing these 2024 tax year, I'd like to conclude my presentation on capitalistic operations. Your Board is proposing to delegate under the 22nd, 23rd and 27th resolution, the confidence to decide the issuance of shares and the securities, with preferential subscription -- the resolution 29th and 30th, which is the issuance of reserved shares. And for those employees with pension -- employees of foreign companies, we do not have any observations to put forward in the modalities information provided by the Board. And finally, your Board is proposing to authorize the Board to reduce the capital. And resolution 31st, we have no observation, no comment on the causes and conditions of the capital reductions under consideration. I'd like wrap up this presentation with our report on sustainability information report of limited engines, focuses on compliance with the ESI and European regulations. Firstly, the -- Committee by Air France KLM to determine the published information. Secondly, information and abilities -- or sustainability included in the state of sustainability. And thirdly, the taxonomy. On the basis of procedures carried out, we have noted no errors, no emissions or significant instances regarding compliance with SRS and European Regulations. Part 3 of our report includes a technical observation related to the requirement of the NSH pollution as presented in Paragraph 4245 of sustainability. Dear Chairperson, ladies and gentlemen, and shareholders, I'd like to thank you for your attention and for your trust.

[Interpreted] Thank you very much, Mr. statutory auditor, and thank you to all of the college for having done this major works for our group. So now we will start our questions and answers session.

[Interpreted] And what I suggest, as we always do, is to take 3 questions at a time. And I would like to ask you to introduce yourself when you take the floor. As much as you can to try to stay short in your questions, so we can take as many questions as possible I think we have about 45 minutes for this session because we've all have kept very good time. Alexandre, if you want to give us a few guidelines.

[Interpreted] Absolutely. Maybe to get started off in this Q&A sessions, the Consultative Committee of individual shareholders, as mentioned by Steven earlier, has worked on the main topics of interest for you. So I'd like to convene the members of CCA to stand up and to ask 3 questions that have ensued out here and resulted from their work. Mic #3 is at your disposal.

[Interpreted] Isabelle Ranc. My first question is for the -- about the trade war with the United States. What is the impact of the geopolitical context, particularly the tariffs imposed by the U.S.A.? Are you more or less impacted rather than our competitors, like IAG, for example, not to mention it?

[Interpreted] [indiscernible] My questions are as follows. With the betterment of the financial results, when is the group going to distribute dividends so as to evenly and share value with shareholders, which have been -- who have been impacted by the drop share price. What are your thoughts on this?

[Interpreted] [indiscernible] My question is as follows. With the launch of the new seat, La Première at Air France, can you tell us more about the premiumization strategy of Air France Group?

[Interpreted] Thank you, Steven, you may -- or Ben, maybe who wants to start?

[Interpreted] With regards to your first question on tariffs and tariff impact, if group isn't necessarily a significant impact of the said tariffs. Now to those results, what we're looking at the future is bookings or premium cabins are still doing well. And for economic cabin and for leisure passengers, there's a slight reduction in -- or a slowdown in demand, but it's not something of great that is concerning as it is a minor phenomenon. So -- but this is something that we are looking at.

I think we have still, let's say, quite a low equity. I showed it is EUR 800 million this year. We served hard from the COVID crisis. It's good to see that the net result is now really adding, let's say, to the equity levels, but I think we need to further strengthen first the equity before we can pay any dividends.

And on the last question regarding the premiumization strategy for the group. Look, the group is set up with a very high cost structure and already a strong, strong customer base, which are looking for quality products. So we have already a strong offering of quality products. What we had -- what I inherited in 2018 was on a clear customer offering or clear customer promise. So we have put a lot of effort into simplifying the customer promise, making sure that what we offer is our products where we can be profitable, and we put a lot of effort into standardizing the business class cabins at both KLM and Air France. And to date, we're seeing steady margin increases at both airlines. So this is something very positive. Particularly in France, we are focusing on getting greater share of the local market. The local market when it does not involve a connection, usually is higher yielding, and that strategy is working. And then with the La Première decision to relaunch and to invest money in, it's a very small part of our capacity. However, it has a disproportionate impact on our image and our brand at Air France. And as many of you saw, when we launched the product a few -- last month or in April, the response was unbelievable. So it does have a very strong halo impact. It is profitable. It was not profitable in 2018. So these investments are paying off exactly how we had expected.

[Interpreted] Thank you. Thank you, Ben. So now we'll take another batch of 3 questions. In the room, number four.

[Interpreted] Francois Marie...

[Interpreted] Francois, I couldn't see you in the dark, in the darkness now.

So the group question, Dear Chair, is about the excellent growth of the group. Can you update us on Air [indiscernible] and TAP Air Portugal? Any updates on those?

[Interpreted] So we may want to take another question, if I can see them in the room. Help me. So there's 1 and 2. 1 and 2. Am I right?

I'm Nelli from the Netherlands, and I'm going to ask my question in English. From Moy Defence, a Dutch climate organization and I was last year too. And I ask you whether KLM would do better on climate plans. And you, Mr. [indiscernible], you answered that you are taking small and big steps. Yet finally enough, in the past year, I have not seen a single step forward, not even a little one. And actually, it's not funny at all as the climate crisis already takes many lives today. Your own climate plan states a CO2 reduction percentage of 12-measly percent in 2030. However, researchers found that because you want to fly more and you base your reduction plans based on gases in the air, you will actually emit 6%more. That means to commit to international climate agreements, KLM needs to reduce the amount of kilometers that you fly. In other words, you have to shrink. In the Netherlands, you act like it will mean the end of the road to your Dutch customers if you shrink. It's -- but we have published a new research that -- this one, you can actually get it, that reveals your lies. It shows that you can shrink. The study reveals that on 1/3 of all of our KLM destinations, the planes are filled for 2/3 by transfer passengers, detour passengers. Shrinking then hardly means anything to your Dutch customers as prices will also stay the same, almost. And you liked about taking steps, you liked about your emissions and you like about your reduction plans. How can I then trust that you care and will respect all lives on this Earth, including those of future generations? There is only one thing. There is only one thing you can do to make up for your mistakes, science and the IPCC are very clear about that. So my question to you, KLM, and please don't make me ask this again next year, I think nobody likes that in this room, will you reduce your CO2 emissions by 48% in 2030 compared to 2019 in absolute terms in your entire value chain, that means scope 1, 2 and 3?

[Interpreted] And then Marjan will give us the elements, and then you can reformulate that, please.

Thank you for your question. So if you're following our group and our company and in particular, KLM, I hope that you have -- you've seen the number of aircraft, new aircraft that have been delivered since our last AGM, each one of them producing approximately 25% CO2 reduction. We have not increased ASKs or capacity at KLM. So in effect, that is a reduction versus last year. It is not an increase in CO2 emissions. So that clarification and that is all public. It's all in our documents. When you talk about transfer traffic and whether that will have an impact on KLM if there is a reduction, this traffic is going to fly irrespective. So whether it connects over Schiphol or over Zurich, over Frankfurt, over London, that's not going to change in terms of CO2 impact to the world. The KLM network, as it stands today, provides an enormous benefit to Dutch citizens. Many of the routes that fly out of Amsterdam Schiphol are not sustainable without -- without these connecting customers. It's just not possible. So by default, the less connection we have at Schiphol, the fewer destinations, the -- if we are not able to compete on certain routes and there's another competitor who has the advantage of their hub on the other end, that will result increased charges, increased price for those who live in the Netherlands. So I'd like to refute what it is that you state there on those particular statements that you just made. There definitely has -- and the amount of -- that we spent on these new airplanes as exactly as planned. There are a few airplanes that are delayed because Boeing and Airbus' delivery schedules. But those are the only reasons why we're not moving any faster on increasing the number of next-generation airplanes, which have a proven significant improvement in the amount of CO2 emissions.

Thank you, Ben. Marjan?

To add, we all read the research. But KLM is a hub-and-spoke model as the business model, as Ben already explained. And people they don't -- they fly for a reason. And 84% all our passengers, they choose the best option. And 75% of our transfer of passengers, they don't have a direct alternative. So if you look at the model in total and you reflect reducing frequencies, for example, to Barcelona, the one -- the thing which is not looked at is that if you remove Barcelona, we can't fly you to Johannesburg, for example, because a lot of transfer passengers will fly from Barcelona via Amsterdam to Johannesburg. So the only reason we can fly to destinations like that is that we have transfer passengers.

[Interpreted] Thank you, Marjan. Can I give you back the floor to -- hang on. We're going to take the previous question of Mr. Robardier on the external growth for the group.

[Interpreted] Yes, with regard to your question on extend growth with regards to TAP, T-A-P, TAP has been new elections in -- taking place in Portugal with a change of government. As opposed to selling of TPR Portugal has been put on hold, and this discussions have now started. And what is the state going to be prudent in [indiscernible], we don't know yet. The process is not yet initiated on Air Europa, Iberian Peninsula, on the Iberian Peninsula. This is an active project at this point in time. We made progress. It's been years now. We've been looking at Air Europa. In the past few months, this has been more significant for them to sell off the company or part of it. But I don't have any further update to share with you with regards on dates of consultation. In terms of growth, most significant project, which is out of Iberia Peninsula.

[Interpreted] Thank you, Ben. Any further questions? Yes, number four.

[ Question off mic ].

[Interpreted] Can you please explain your question?

If there was a reduction in CO2 emissions versus last year. And remember, I answered your question.

Well, I don't think you did. You would produce CO2 emissions by 48% as is your responsibility as a company. And I don't think I can answer that. And in response, you said that it would be impossible to reduce the commuters that you fly as it would mean problems for Dutch customers. But this independent research by CED delved -- it shows that it is possible also in favor of your Dutch customers. And then you said something about more efficient airplanes. And what I hear is you're still going to fly more, which means more CO2 emissions. So I don't think you are going to emit those 48 -- you're going to reduce the 48% that is necessary by the Paris Agreement, the city that we're in, to limit the climate crisis and take your responsibility as a company. Is that correct?

No, not at all. I mean we take the responsibility extremely seriously. We have commitments for 2030 and for 2050, and those stayed the same, and we are moving in that direction. So nothing changes there. Our 2030 commitments are still respected on our part. In terms of absolute CO2 emissions, they are down. This report you're referring to I'm not sure where they get their information, what they do. I've been in this business 35 years and the model at Schiphol, the way we're following it, I can tell you there is absolutely no way that the benefits of the Dutch economy or Dutch citizens direct, today out of our activity at Schiphol, will remain if we don't move toward what it is we have in our business plan going forward. Less traffic at Schiphol will mean less connectivity at Schiphol, which is not positive for the Dutch economy, will not mean a reduction in CO2 emissions globally. It may mean a reduction in CO2 emissions in the Netherlands, but these customers will just travel via other hubs. And this is -- if you look around the world, there's no indication whatsoever, that there is a reduction in traffic if a hub reduces its number of flights. There's nowhere in the world where we've seen this.

[Interpreted] Thank you. Thank you, Ben. Excuse me, I'm going to let Marjan take the floor. Marjan, do you want to say a word.

Still, all KLM employees, we try and do everything we can to fly more cleaner, more quieter and more efficient every day. And yes, we take small steps and we take big steps. But not only we buy a lot of new fleet, we use a lot of sustainable aviation fuel. We use AI to reduce weight on board and reduce weight. So we do everything we can. It's difficult, we all know. And I understand the concerns about climate change. We shared it, and we do everything in our power, we can.

[Interpreted] Thank you, Marjan. I believe there was a question on #4.

[indiscernible] individual shareholder, President of Natixis Monitor and has shares savings plan. We have the convocation. We have 70 pages. And there isn't a single figure on operations. I don't know if there was -- if carry passengers or we sell cars. And what is the Committee doing? With advisers a model to be -- to deliver performance as in SBF120 at [indiscernible] welcome. You haven't left a positive memories to cargo and operations at [indiscernible] launch. But even if 110 shares, we don't feel you're engaged and confident. And nevertheless, we would like to wish you a very warm welcome or maybe not. I have no doubt that you'll do like Mrs. Couderc, and will accept for the same functions to announce the totality of the -- or part of the totality of the EUR 350,000. You were to keep the EUR 200,000. And member Only, a platform integrated and made famous by [indiscernible]. And a bright idea of [indiscernible]. Now the group wants to give up Orly. And as the Syntex Board has just announced, Mr. Ben Smith said, what is Line 14? And this is about 1 million passenger we're talking about. And that -- so this is 12 million passengers such as reported yearly. And following the plan of --. This project to give up Orly will pay to the benefit of the competition.

[Interpreted] But what is your question? I hear with your comments, but...

[Interpreted] Appreciate this. But my question is don't close Orly, this is an important airport. And competitors like Iberia Vueling are hear and will take over. Second question, in '23, we -- the group shared we restored EUR 2.5 billion of market cap of Air France before Mr. Ben Smith had sold its shares to -- euros. So what are you going to be doing to -- for the share price to pick up? What are you going to do about this? In terms of your debt report and you repaid, congratulations by anticipation, the Oceana, dilutive to 10% of the capital. So -- this is a question, what is your intention to bring down this debt related? Assuming development which interest went out, 7.1% to 8.93%. This is the Apollo fund. Defend that led to stock market decadence. Work on debt as usual.

[Interpreted] We will try to find a question on your observations. That was with regard to debt. Furthermore, you said for dividends, dividends, we want to reinforce equity, but we already have EUR 0.29 for dividend.

So we will now stop here. I will continue to come back to win. We are leaders of the use of SAF in the world, and that is one of the aspects which is not -- enough with regard to competition. And in spite of all the taxes imposed by France, by the French government, and that enables Air France-KLM to be the only company in the sustainable development.

[Interpreted] Thank you very much for all of your comments. We did not appreciate all of them. And unfortunately, finding us guilty as charged before our next chair of the Board has even come into office. I do not think this is the right place to do it. So we might try to answer some of the questions that you've asked. Ben, would you like to start on the fact that we did not say whether we are selling cars or something else?

[Interpreted] Car sales is not doing great at the moment. There are a lot of questions there, but the key figures, key figures. I have the universal registration document in front of me. On Page 4, very clearly, we have 564 craft being operated, 911 million tons of freight, 98 million passengers, [ 3,090 ] countries served and 320 destinations. So I don't know what other...

[Interpreted] That's Page 4 on the URD. And with regard to Orly, the Orly.

In 2018, obviously, it was higher to increase the value of this group. And that's -- as a shareholder, I believe, that's why you're here. And the -- unfortunately, the operation at Orly, was not profitable was significantly not profitable. So we had 3 options. You can continue to lose money, we pull out or we find a new model. We made the decision to find a new model within the group. We did a lot of work to make that happen with a lot of social partners. It's not easy, and we're still in the middle of this transition. But it is 1 of the only ways that we believe can turn our operations and our presence in all the profitable. By far, the majority of carriers that operate from Orly are low cost. And the Air France model, even if we tried our best to evolve it into a low cost, is not possible. So we want to maintain our presence at Orly. We're not giving up any of our slots. And this, in our view, is the best possible way to turn around our financial performance. And you mentioned something about shares, me having shares. So in 2018, 2019, I think maybe even 2020, I personally purchased shares equivalent to 50% of my base salary. It was on in the beginning, and none of those have been sold. So I don't know what you're looking at there.

[Interpreted] Thank you very much, Ben. And could you please add to what Ben said on Orly.

[Interpreted] Yes, so to add to what Ben said -- and he's been saying that for a long time, the domestic situation was recording a deficit. So we had to step up our operations to restructure this domestic network, 40% of demand at the time. Unfortunately, ever since the end of the pandemic in October 2022, we have noticed that this decrease has continued because we have reached minus 50% overall. A study recently shown that there has been minus 50% of return tickets. And thank you for saying that it was my responsibility, because this was a brilliant product. I only took part in this journey, but this shuttle was born in 1996, and it was quite successful, but now it is not successful enough. So we've noticed that we are ending this restructuring process in Orly. There is a lot of action plans to carry out. This difficult restructuring operations. We're not giving up on our domestic operations. In Charles de Gaulle, we still have domestic flights with an intense frequency from 2026. DDG Express will make the link between both airports or Paris and Charles de Gaulle in 2027. And the goal is to fight back against low-cost airlines that are doing better on the domestic market and that have made it -- made things more difficult in the network. So restructuring is absolutely of the utmost importance for our financial balance.

[Interpreted] Thank you very much, Anne. Thank you for this comprehensive answer. Are there any more questions, please? I'm sorry. I can't see properly. Is someone raising their hand? One -- number 1.

[Interpreted] Sebastian, individual shareholder. I would like to know when you schedule -- how could I put this, given the financial results of this year, which I will hope will be better still next year, even if they're already very good. Are you envisaging between now and 2030 to be paying out dividends again?

Steven?

Sorry, I will speak much better in English to explain. There is a translator which you can put on. So let's first wait how this year will end. I think we still have quite a low equity, as I already said. We still have also to pay back to the French states, the social charges, and to the Dutch Day to a tax, which we didn't pay during the overtime. So we talk about EUR 500 million or so, again, in 2025. So let's say, we wait first, what will be the outcome of '25, and then we will come back on the dividend policy for the next year.

[Interpreted] Thank you very much, Steven. Thank you, sir. I now can see a question, number four.

[Interpreted] [indiscernible], individual shareholder. I would like to know something, with the new profits that generated, are you looking to reinvest them in order to reduce costs, looking, for instance, by buying airports or new infrastructures?

[Interpreted] Thank you, sir. The question was considering our recorded profits, will we reinvest in a certain number of infrastructure in order to decrease our costs?

Let me -- so I start?

Yes.

I think these shares are not, first of all, for sale. But I think we want to invest at first in our fleet to make sure for our sustainability trajectory, as we discussed already earlier, and also to gain in profitability in the company. So I think our first priority is to invest in fleet, to make a more profitable in our current businesses before we are going to diversify in airports.

[Interpreted] That we need to deleverage our debt. There are several projects around -- around our lounges in Schiphol, in [indiscernible], some projects around the world, might have been in New York. So this is to align our strategy in the terminals with what we do on board.

[Interpreted] Thank you very much, Steven. Thank you, Ben. Any more questions? Number two. Number two, please.

My name is Tom Stetson. I'm from [indiscernible]. I have a question for KLM. Earlier this afternoon, the court in the Netherlands has annulled the nature permit of Schiphol Airport. And now environmental organizations are calling for immediate reductions of flights. Recently, the government, for noise reasons, has also told Schiphol that it has to reduce its number of flights. And also to meet climate targets, Schiphol Airport will have to reduce its CO2 emissions in 2030 by 50%. So my question is, this downsizing of Schiphol, our home base, seems inevitable on all sides. And my question is, how are you going to adapt your business model? And what are you going to do to ensure that KLM has, under these conditions, a sustainable and profitable future?

[Foreign Language].

So thank you for the question. First of all, we indeed received the predict of the judge. And it means that Schiphol need to reapply for the nature permit, and it's all related to nitrogen and the way the calculations have been done by Schiphol. Schiphol used, however, the correct reference situation, and therefore, there will be no consequences, no consequences for the capacity at Schiphol today. And we expect Schiphol to start reapplication as soon as possible. So that's the first answer to your question. The second is that the Dutch government decided with a balanced approach to reduce movements from 483 to 478. However, they decided as well 2 weeks ago that sustainable growth will be possible after we reach 20% noise reduction. And we are quite confident with the new fleet that we will reach the 20% noise reduction in the next years. So therefore, we still believe in the business model of KLM. We still believe that, also with the new fleet, we can grow in seats. And that with the objective and the achievement to reach the noise reduction with 20%, there will be growth possibilities again. Ben?

I'm just reading the verdict now. And I think before going -- I mean it just came out. Before going into more detail, I think our legal team needs to really assess and give us a clear view on what this could mean for us. But my answer is, given our first views, I think it's a bit premature to give a position on our part.

[Interpreted] Thank you very much, Ben. We are now reaching the end of this session. I would like to extend my warmest thanks to all speakers. Thank you for answering those questions and making those comments. And now Alexandre, I think we can now move on to the votes of our resolutions.

[Interpreted] Absolutely. Thank you, Anne-Marie. So the final is now 59.99%. The legal, that's the quarter of the shares having your right of vote is, at the end, represented or having expressed their intent to vote remotely. So first, we'll look at a quick film with the how to use tablets, which have been -- you have been provided with. [Presentation]

[Interpreted] So let's move on to vote on the resolutions. First one, the ordinary one, first one, approval of the statutory accounts of the fiscal year closed 31st of December 2024, with a profit of EUR 96,337,577. The vote is open. You have 12 seconds. [Voting]

[Interpreted] Voting is closed. Resolution adopted and carried. The second one, approval of the accounts consolidated on the 31st of December '24, with a net result of the group of EUR 317 million. Poll is open. [Voting]

[Interpreted] Voting closed. Resolution carried. The third resolution, the allocation of the result closed on the 31st December, it is proposed to affect profit of the exercise in totality to the forwarded account. Voting open. [Voting]

[Interpreted] Voting closed. Resolution is carried. Fourth resolution, approval of a regulated agreement collective to the completion of a new joint venture agreement with China Eastern Airlines. Poll is open. [Voting]

[Interpreted] Voting closed. Resolution is carried. Fifth resolution approval of related agreements for the commercial conversion with Delta Airlines and Virgin Atlantic Airways. Voting open. [Voting]

[Interpreted] Voting closed. Resolution carried. Renewal of the mandate of Mrs. Gwenaëlle Avice-Huet, a member of the Board for duration of 2 years. Poll open. [Voting]

[Interpreted] Voting closed. Resolution carried. Seventh resolution, renew of the mandate of Mrs. Leni Boeren as a member of the Board of Directors for a duration of 4 years. Voting open. [Voting]

[Interpreted] Voting closed. Resolution carried. Eight resolution. Renewal of the mandate of Delta Airlines as a member of the Board of Directors for duration of 4 years. Vote is open. [Voting]

[Interpreted] Vote closed. Resolution carried. Ninth resolution. Nomination of -- appointment of Mrs. Isabelle Guichot as a member of the Board of Directors for a duration of 4 years. Voting open. [Voting]

[Interpreted] Vote closed. Resolution is carried, approved. 10th resolution, renewal of the mandate of Mrs. Anne-Marie Idrac as a member of the Board of Directors for a duration of 2 years. Vote open. [Voting]

[Interpreted] Vote closed. Resolution carried. 11th resolution appointment of Mrs. Véronique Penchienati-Bosetta as a member of the Board of Directors for duration of 4 years. Vote is open. [Voting]

[Interpreted] Vote closed. Resolution carried. The 12th resolution, the appointment of Mr. Qingchao Wan as a member of the Board of Directors for duration of 4 years. Vote is open. [Voting]

[Interpreted] Vote closed. Resolution carried. 13th resolution. Approval of the information on the compensation 2024 of each of the social managers. Vote is open. [Voting]

[Interpreted] Vote closed. 14th resolution, approval the compensation or compensation paid for 2024 to Ms. Anne-Marie Couderc as Chair of the Board of Directors. Vote open. [Voting]

[Interpreted] Vote closed. Resolution carried. The 15th resolution, approval of the company components paid or attributed for the exercise 2024 to Mr. Benjamin Smith as CEO. Vote is open. [Voting]

[Interpreted] Vote closed. Resolution is carried. 16th resolution, approval of the compensation policy of the directors, the Executive Directors for the exercise 2025. Vote open. [Voting]

[Interpreted] Vote closed. Resolution carried. 17th resolution, approval of the policy of compensation of the Chair of the Board of Directors for the exercise 2025. Vote is open. [Voting]

[Interpreted] Vote closed. Resolution carried. 18th resolution, approval of the policy and compensation of the CEO for exercise 2025. Vote is open. [Voting]

[Interpreted] Vote closed. Resolution is carried. 19the resolution, authorization provided to the Board of Directors with the effect of operating on the shares of the company. Vote open. [Voting]

[Interpreted] Vote closed. Resolution carried. We now move on to the extraordinary resolutions. We begin with the proposal of modification of the articles of the company. 20th resolution, modification partial of this articles with regard to social object of the society. Vote open. [Voting]

[Interpreted] Vote closed. Resolution is carried. 21st resolution, modification of Article 20 of the articles pertaining to the deliberations of the Board of Directors. Vote open. [Voting]

[Interpreted] Vote closed. Resolution is carried. Now we move on to the financial delegations, which can be used only outside the periods of public offers. 22nd resolution, delegation of competence to the Board of Directors to issue shares or values with maintenance of the preferential right of subscription of the shareholders. Vote open. [Voting]

[Interpreted] Vote closed. Resolution carried. 23th resolution, delegation of competence to the Board of Directors to issue shares through offers to the public with, no preferential right of the shareholders but with a time frame for priority of mandatory subscription. Vote open. [Voting]

[Interpreted] Vote closed. Resolution carried. 24th resolution, delegation of competence to the Board of Directors to issue shares through public offers with the discretion of the preferential right of shareholders, but with non-mandatory subscription period. [Voting]

[Interpreted] Vote closed. Resolution is carried. 25th resolution, delegation of competence to the Board of Directors to issue shares without preferential right of shareholders through private placements. Vote open. [Voting]

[Interpreted] Vote closed. Resolution carried. 26th resolution, delegation of competence to the Board of Directors to increase the number of shares to be issued in case of increase of capital with or without right of -- preferential right of subscription with the limit of 15% of the initial issuance. Vote open. [Voting]

[Interpreted] Vote closed. Resolution carried. 27th resolution, delegation of power to the Board of Directors to increase the social capital in order to nature assets provided to the company made up of shares or other titles. Vote open. [Voting]

[Interpreted] Vote closed. The resolution is carried. 28th resolution, delegation of competence to the Board of Directors in order to increase social capital by incorporation of reserves, profits, premium of issuance or other sums right. Vote open. [Voting]

[Interpreted] Vote closed. Resolution carried. 29the resolution, delegation authorities to the Board to proceeding with capital increase reserved to members who company's pension plan with the group with -- dilution. Voting is open. [Voting]

[Interpreted] Voting is closed. Resolution is carried. 30th resolution, delegation of authority to the Board to proceed with a capital increase reserve to -- beneficiaries of employees of foreign subsidiaries with DPS suppression. Vote open. [Voting]

[Interpreted] Voting closed. Resolutions carried. 31st resolution, authorization given to the Board to reduce capital through cancellation of self maintained or self persist shares. Voting is open. [Voting]

[Interpreted] Voting is closed. Resolution is carried. Finally, 32nd and final resolution, powers for formalities. Voting is open. [Voting]

[Interpreted] Voting is closed. Resolution is carried. All resolutions having been submitted to voting. I'd like to hand the floor back to our Chairperson.

[Interpreted] Thank you. Thank you very much, Alexander, for these resolutions. Thank you all for your attendance. I would like to thank, in particular, all the members of the Board who are here. Those whose mandate has come to an end like -- and for the newcomers. I am leaving the presidency of our Board. And this assembly being closed, I would like to give the floor to hand it over to Florence Parly, and I trust that Florence and Ben, around the CEO committee, between our CFO, who you know well now, [indiscernible] for Air France and Marjan Rintel for KLM, as well as all of the members of the ExCom, some of them I could see in the room, and all our team members. So I'd like to thank the shareholders with us in the room for being loyal, for their unwavering support throughout the difficult times that we're facing. The only thing that we know is that this group is a beautiful group with great airlines and beautiful activities and exceptional teams. So I believe that no matter what we face under the leadership of Florence Parly and Ben Smith, when we add their professional skills, it is clearly a great success ahead. So I trust you all to find the great pleasure working together for these beautiful airlines and great group, and to face the challenges that I'm sure we will face because we are in the air industry. Thank you all for your attention. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]