AIR FRANCE ANNOUNCES Q3 RESULTS

Bangkok--Feb 28--Aziam Burson-Marsteller Operations Disrupted by The Tragic Events of 11 September but Financial Status Remains Healthy Third Quarter (October-December 2001):Air France holds up well with better-than-expected results - Recovery of traffic with end-of-quarter spurt - Stable passenger yield - Operating loss of 112 million euros - Net loss of 131 million euros April- December 2001: net profit of 152 million euros - Turnover: 9.48 billion euros (up 2.2%) - Operating profit: 213 million euros (down 46.1%) Full fiscal year 2001-02: targeting an operating profit The tragic events of 11 September severely disrupted Q3 operations but Air France’s financial status remained healthy throughout the first nine months. Passenger Operations Passenger traffic gradually recovered in a global context of reducedcapacity. Air France suspended its growth strategy and scaled back its capacity to winter 2000 levels, thanks to a well-balanced network enabling it to shift capacity from hardest hit routes to those benefitting from more buoyant traffic. By the end of Q3, traffic had dropped 6.5% for a stable capacity (up 0.5%). Although the load factor fell 5 points to 70.6%, it nevertheless remains one of the highest in Europe. On the strength of a very good performance in the first half of fiscal 2001-02, Air France posted positive results for the first nine months, with capacity up 4.9%, traffic up 1.5%, and a load factor at the high level of 76.4% (down 2.6 points). Passenger yield per revenue passenger-km held up well both in the 3rd quarter and over the 9-month period. Cargo traffic suffered both from the economic slowdown in the United States and Asia and from the terrorist attacks. During the third quarter, however, traffic dropped 6.0% in line with capacity (down 5.5%). Over the 9-month period, both traffic and capacity fell 3.1% and 5.9% respectively. In the third quarter, cargo yield per revenue tonne-km resisted well (up 1.8% excluding currency effects), and remained stable throughout the first nine months of the year. Results -Q3 net loss of 131 million euros (October-December 2001) Consolidated turnover stood at 2.91 billion euros (down 7.8%) including a contribution of 179.5 million from regional subsidiaries (up 26%). Cost-cutting measures, together with lower fuel prices, led to a 5.8% reduction in operating expenditures, despite the soaring increase in insurance premiums for war risks (up 21 million euros) and security costs (up 11 million euros). EBITDAR amounted to 261 million euros (down 13.6%). Air France posted an operating loss for Q3 of 112 million euros against a 21 million-euro loss last year. The Air France Group posted a net loss of 131 million euros against a 32-million-euro profit in the year-earlier period. A substantial portion of the difference is attributable to the currency impact on debt and proceeds from aircraft sales (73 million euros) accounted for last year. - Net profit of 152 million euros for first nine months Air France posted a consolidated turnover of 9.48 billion euros for the full 9 months, up 2.2% (unchanged on a like-for-like basis). Operating expenditure came to 9.34 billion euros, representing a 4.1% increase. Air France reduced its unit costs by 1.5% over this period. At constant currency and fuel prices, they remained virtually unchanged (up 0.5%), thereby reflecting the effectiveness of the cost-cutting measures undertaken by the Company. EBITDAR stood at 1.25 billion euros (down 4.3%). For the first nine month of the financial year 2001/2002, the Group posted a net profit of 152 million euros compared with 461 million the same period last year. A substantial portion of this difference can be accounted for by proceeds from aircraft and financial disposals (78 million euros this year against 160 million last year). Outlook for fiscal 2001-02: targeting an operating profit The current situation shows a faster-than-expected recovery of traffic during the 3rd quarter, confirmation of this trend in January and the first three weeks of February, combined with a stable yield per revenue passenger-km and a return to last year's level in terms of unit revenue per available seat-km. Under these circumstances, Air France is now targeting an operating profit for fiscal 2001-02. In addition, it should be noted that the Company expects to receive a total of 60 to 80 million euros in compensation for operating losses and extra costs incurred by additional security measures following the 11 September events. For more information, please contact Supaporn Decharkom(Air France) at phone (662) 635 1188 or Sribenja Semmeesook (Aziam Burson-Marsteller) at phone (662) 252 9871. End. -AN-

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