Highlights of the 2010-11 financial year

April 2010

On April 1, Air France launches its new medium-haul product, which is well received by customers.
Between April 15 and 22, large parts of the European air space are closed because of the Eyjafjallajoekull volcano eruption in Iceland, which grounded most European airlines for a period of approximately 6 days. The Air France-KLM Group estimates the revenue loss at €268 million with a €158 million negative impact on the operating level.
On April 29, the company WAM is the subject of an IPO on the Madrid stock market under the name Amadeus. The Group realizes a €1.03 billion capital gain on this transaction corresponding to the sale of one-third of its shareholding and the revaluation of the remaining interest of 15.2%. This transaction also generates cash proceeds of €193 million.

The voluntary redundancy plan at Air France closes, resulting in 1,900 departures.

Vietnam Airlines and Tarom join the SkyTeam alliance as it celebrates its 10^th anniversary.

Italian company Alitalia joins Air France-KLM and Delta in the joint-venture on the North Atlantic, with retro-active effect dating to April 1.

The Air France Board of Directors announces the creation of a Flight Safety Committee.
Air France and China Southern sign a joint-venture agreement in addition to the existing agreement between the Chinese carrier and KLM.
Taiwanese carrier China Airlines announces plans to join the SkyTeam alliance.
Air France-KLM is confirmed air transport leader in sustainable development for 2010 and remains in the Dow Jones Sustainability indices, DJSI World and DJSI Europe, for the 6^th consecutive year.

Aerolinas Argentinas and Garuda Indonesia announce that they are joining the SkyTeam alliance.
The European Commission imposes fines on 14 cargo operators including Air France, KLM and Martinair for anti-competitive practices in the air freight sector relating mainly to the period between May 2004 and February 2006. The total level of fines imposed on companies in the Air France-KLM Group is €339.6 million. Considering this amount to be disproportionate, the Group files an appeal against the decision with the European Union Court of Justice.

A record level of snowfall significantly disrupts traffic in Europe and particularly at Paris-CDG and Amsterdam.
Air France signs a code-sharing agreement with Saudi Arabian Airlines, which signs an agreement to join SkyTeam in 2012.

Political crises in the Middle East and Africa weigh on the Air France-KLM Group’s traffic.
Middle East Airlines announces plans to join SkyTeam.

An earthquake followed by a tsunami and a nuclear crisis in Japan leads the Group to reorganize its flights to Tokyo. The Group operates the Tokyo flights out of Seoul before resuming its direct flights in early April. The event also has a negative impact on the Group’s traffic and continues to weigh on this destination.
The Group ends its financial year with a positive operating income of €122 million, a €1.4 billion improvement, under the effect of the strategic measures implemented in 2009-10, underpinned by the economic recovery and in spite of an environment disrupted by numerous exceptional events.

The Board of Directors decides to submit a proposal to the General Shareholders’ Meeting of July 7, 2011 that it adopt December 31 as the date for the end of the financial year, in line with the majority of other air transport companies. The financial year starting April 1, 2011 will consequently be of 9 months’ duration, subject to the adoption of this resolution.