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Air France-KLM has reported a record operating profit of over 2 billion euros for the full year, driven by strong premium travel demand and lower fuel costs. The airline carried more than 100 million passengers and posted earnings above analyst estimates. Investment in upgraded cabins, enhanced lounges and improved onboard services supported growth, particularly on transatlantic routes. Despite higher airport charges and broader economic uncertainty, the group achieved a 6.1% operating margin for 2025 and aims to exceed 8% by 2028. With plans to expand capacity by 3-5% as new aircraft enter service, Air France-KLM continues to strengthen its position in the global aviation market.
Air France-KLM reported a record operating profit of over 2 billion euros for the full year, supported by strong demand for premium travel and lower fuel costs. Advertisement
The Franco-Dutch airline group said its earnings before interest and tax rose by 400 million euros compared to 2024, exceeding analyst forecasts of 1.88 billion euros compiled by LSEG. The result marks the first time the company has crossed the 2 billion euro threshold in operating profit.
Our airlines carried over 100 million passengers and generated an operating result of more than 2 billion euros a first in our history, Chief Executive Ben Smith said in a statement.
The improvement was driven by higher revenues and a decline in fuel prices, which eased cost pressures. However, the group continued to face rising expenses, including higher airport charges at Amsterdam's Schiphol, which affected per-passenger yields.
Premium travel remained a key growth driver, particularly on transatlantic routes. Air France has invested in upgraded cabins, faster onboard WiFi, improved airport lounges and a revamped first-class offering. The strategy has contributed to higher demand in its premium segments.
Despite a broader decline in the number of Europeans travelling to the United States last year, transatlantic performance remained strong for the group. European airlines overall have seen continued interest in higher-end services even as economic concerns weigh on consumer sentiment.
Air France-KLM reported an operating margin of 6.1 per cent for 2025 and said it aims to widen this to above 8 per cent by 2028.
Looking ahead, the airline expects to increase capacity by 3 to 5 per cent this year as new aircraft enter service. The additional planes are expected to support network expansion and operational efficiency.
Shares in Air France-KLM have risen nearly 34 per cent year-on-year, reflecting improved financial performance and progress in managing labour-related challenges. However, analysts have cautioned that economic uncertainty could dampen demand from American travellers to Europe in the coming year.
The results position Air France-KLM among European carriers reporting steady recovery and profitability amid ongoing cost and demand pressures.
Source: Reuters
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