Air frange strategic

2005-06 reference document

Contents
Corporate governance — 10 Activity report — 46 Social and environmental data — 86 Risks and risk management — 104 Financial report — 124 Additional Information — 248

This document is an unofficial translation of the French Document de Référence, which was filed with the French Autorité des Marchés Financiers on June 29, 2006, in accordance with article 212-13 of the AMF General Regulations. This unofficial translation has been prepared by Air France-KLM for information purposes only and has not been reviewed or registered with the AMF. The French Document de Référence may be used for purposes of a financial transaction if supplemented with an offering memorandum approved by the AMF. In the event of any ambiguity or discrepancy between this unofficial translation and the French Document de Référence, the French version shall prevail.

Chairman’s message
Dear Shareholder, We achieved an excellent performance in 2005-06. Operating income rose by nearly 70% to 936 million euros and net income reached 913 million, including an exceptional gain of 504 million euros on Amadeus. These results confirm what we had already announced last year, the success of our merger, both operationally and financially. Our combination has given us a real competitive advantage, supporting our strategy of profitable growth. Despite a continued high oil price our objective is for operating income in the current financial year at least in line with last year. Our confidence in the future has led us to propose a doubling in the dividend to 30 euro cents. Within a context of buoyant economic conditions, Air France and KLM have been able to seize every opportunity offered by sustained demand thanks to the power of their networks, organized around two highly efficient hubs. We achieved record load factors across all markets, carrying 70 million passengers. This puts us far ahead of our competitors and confirms our position as European leader.