Air France–KLM Posts Stable €1.2BN Q3 2025 Results

‍PARIS — Air France–KLM (AF/KL) reported a €1.203 billion operating profit for the third quarter of 2025, essentially flat year-on-year but achieved with a 13.1% operating margin, despite softer cargo yields, continued inflationary pressure in airport charges, and the impact of new ticket taxes in France and the Netherlands. 

Group revenues rose 2.6% to €9.2 billion, supported by growth in the Passenger Network, Transavia, and the Maintenance division.

Passenger Demand, Yields, Costs

The Group carried 29.2 million passengers, up 4.7% versus Q3 2024, with capacity up 5.1% and traffic up 4.5%, resulting in a slightly lower load factor of 88.8%. Unit revenue at constant currency slipped -0.5%, driven primarily by weaker cargo and low-cost yields, although long-haul premium cabins continued to outperform, validating the Group’s “premiumization” strategy.

Unit cost inflation moderated sharply, rising just 1.3%, helped by productivity gains and lower fuel prices (-8.9% post-hedging). Fuel alone improved the quarterly result by €107 million, more than offsetting higher air traffic control and airport charges, including the +41% tariff increase at Amsterdam Schiphol and France’s expanded “solidarity tax” (TSBA).

Cash, Debt & Fleet

Air France–KLM generated €1.47 billion in operating free cash flow in the first nine months of 2025, allowing the Group to keep leverage at 1.6× EBITDA, within its target range of 1.5×–2.0×. Cash on hand stood at €9.5 billion at the end of September.

Fleet renewal remains central to the Group’s decarbonization and cost-efficiency strategy: 32% of the fleet is now new-generation (A220, A350, 787, A320neo family, E2), up eight points in a year. The Group has taken delivery of 38 new aircraft year-to-date and expects up to 80% of its fleet to be new-gen aircraft by 2030.

Segment Highlights

The Passenger Network business remained the Group's core profit engine, posting an operating result of €889 million in the quarter. Premium cabins once again outperformed, with strong yields on long-haul routes helping offset continued softness in economy fares. Despite a slight dip in load factor, unit revenue was up at constant currency, confirming resilient demand in high-yield segments.

Transavia faced a more challenging summer season, reporting an operating profit of €217 million, down €8 million year-on-year. Higher airport and air traffic control charges, along with the new French solidarity tax (TSBA), pushed fares up while competitive pressures in the Netherlands weighed on yields. Load factor slipped 0.9 points, and unit revenue declined 2.8% in the quarter.

Cargo continued to normalize after the pandemic-era highs, with unit revenue down 5.1% at constant currency and load factor falling nearly two points to 43.6%. Longer-than-expected freighter maintenance reduced available capacity, further pressuring mix and pricing compared to the prior year.

The Maintenance division delivered another quarter of solid growth, with revenues up 10% and operating margin improving to 6.3%, supported by a robust external customer pipeline. Third-party MRO sales rose nearly 13%, and the long-term order book expanded to USD 10.4 billion, reflecting continued demand for engine and component services.

Loyalty program Flying Blue posted €221 million in revenue and maintained a healthy 24.4% margin, although reward-seat availability tightened versus the Olympic-boosted Q3 2024. Growth was driven by partner volumes, including non-airline earn channels, offsetting FX headwinds from a weaker U.S. dollar.

CEO Outlook

CEO Benjamin Smith highlighted “resilience in a challenging environment,” confirming 2025 guidance:

• Capacity +4–5% vs 2024
• Unit cost low-single-digit increase
• CapEx €3.2–3.4 billion
• Leverage 1.5×–2.0×