France · Delayed Price · Currency is EUR Air France-KLM Earnings Call Transcripts
Fiscal Year 2026
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Record 2025 results were achieved with strong revenue, operating income, and passenger growth. Strategic focus included fleet renewal, sustainability, and European consolidation, while all resolutions were approved. Dividend payments remain deferred until financial obligations are met.
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Passenger growth, higher yields, and cost discipline drove a strong Q1, with revenues up 4.4% and operating results improving by EUR 301 million year-over-year. Fuel price increases are expected to impact future quarters, but bookings and pricing remain robust.
Fiscal Year 2025
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Record 2025 results with EUR 2.0 billion operating profit and EUR 33 billion revenue, driven by premiumization, cost control, and sustainability progress. Outlook for 2026 includes 3%-5% capacity growth, stable unit costs, and continued focus on margin expansion and fleet renewal.
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Q3 2025 saw stable margins and 3% revenue growth, driven by premium demand and network expansion. Cash flow and leverage improved, with strong maintenance and premium segments offsetting cargo and economy softness. Guidance for capacity and costs remains on track.
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Q2 2025 saw a 6.2% revenue increase and strong operating margin, driven by premiumization and robust demand in premium cabins. Strategic moves included expanding the SAS stake, new partnerships, and disciplined financial management, with outlook and guidance reaffirmed.
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Stake in SAS will rise to 60.5%, accelerating integration and synergy realization, with regulatory approval targeted for late 2026. Significant cost and revenue synergies are expected, especially in loyalty, commercial, and operational areas, while financial impact is projected to be accretive with minimal leverage effect.
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The meeting reviewed strong 2024 results, strategic progress, and ongoing transformation, with all resolutions adopted. Key topics included fleet renewal, premiumization, sustainability, and Board changes, while dividend distribution remains on hold until equity is further strengthened.
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Revenue rose 8% year-over-year, with strong premium demand and improved cash flow. Operating margin and leverage improved, while guidance for capacity and unit costs remains unchanged. Premiumization and sustainability initiatives advanced, and the group remains agile amid market uncertainties.
Fiscal Year 2024
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Record Q4 2024 results driven by premium and ancillary revenue growth, strong Transavia and maintenance performance, and progress in sustainability and fleet renewal. 2025 guidance includes 4–5% capacity growth, low single-digit unit cost increase, and at least EUR 300 million EBIT improvement.
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Operating result was stable at €1.2 billion, with revenue up 4% and strong demand across most regions. KLM faced cost pressures, prompting a turnaround plan, while strategic partnerships and sustainability initiatives advanced. Olympic Games and proposed French aviation tax were key impacts.
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Passenger numbers, revenue, and capacity grew 4% year-over-year, but operating results declined due to Olympic-related disruptions and higher costs. Premium and ancillary revenues rose, while cost controls and fleet renewal continued. Olympic impact is expected to normalize by Q4.