Air France-KLM Group Reports Solid Q1 2025 Results

DALLAS — Air France-KLM has reported a solid start to 2025, showing notable improvement in its operating results despite ongoing industry challenges.

Financial Highlights

It’s been five months since the group announced measures to improve its financial performance. Q1 2025 sees these structural improvements, but the airline group says it needs to continue focusing on cost savings. 

• Revenues: €7.2 billion, up 7.7% compared to Q1 2024
• Operating result: -€328 million, an improvement of €161 million from last year
• Operating margin: -4.6%, up 2.8 points year-over-year
• Unit revenue: Up 3.0% at constant currency while capacity increased by 3.8%
• Recurring adjusted operating free cash flow: Strong at €783 million
• Net debt: Decreased to €6.9 billion, down €0.4 billion from December 2024
• Leverage ratio (Net debt/EBITDA): Improved to 1.6x, in line with the Group's ambition

Operational Performance

Operationally, we had a good quarter with fewer cancellations and “the best departure punctuality in the past two years,” according to Marjan Rintel, CEO of KLM.

In Q1, KLM expanded its fleet with three new A321neo aircraft, launched flights to new destinations in Ljubljana and Exeter, and began construction of a training center for KLM Group pilots.  

• Passengers carried: 21.8 million, up 4.5% compared to Q1 2024
• Passenger load factor: 86.0%, slightly down (-0.4 points) year-over-year
• New generation aircraft: Now comprise 28% of the fleet, up from 21% in Q1 2024
• Cargo load factor: Improved to 49.0%, up 2.0 points

Business Segment Performance

The business units Cargo, Engineering & Maintenance, and Passenger Services performed as expected.

• Passenger Network: Operating result at -€193 million, improved by €163 million
• Cargo: Strong unit revenue performance with 16.2% increase at constant currency
• Transavia: Faced challenges with a €40 million decrease in operating result
• Maintenance: Continued strong growth with operating result up €36 million

2025 Outlook (Unchanged)

• Capacity: Expected to increase by 4-5% compared to 2024
• Unit cost: Projected to increase by a low single digit
• Net capital expenditures: Between €3.2 billion and €3.4 billion
• Leverage ratio: Expected to remain between 1.5x and 2.0x

CEO Remarks

Benjamin Smith, Group CEO, commented that sustained demand supported revenue growth across all businesses, and improved summer ticket sales helped generate cash flow. 

The CEO noted that while the increasingly uncertain context may bring additional headwinds, Air France-KLM is "uniquely positioned to adapt and perform" thanks to its diversified network, premium product offerings, and strong hubs and brands.

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