Air France-KLM began 2025 with a €161 million year-on-year improvement in operating result, bringing Q1 losses down to €328 million. Group revenue rose 7.7% to €7.2 billion, supported by all business units and strong demand, particularly in the Network segment.
Key Financial Highlights:
Recurring adjusted operating free cash flow: €783 million
Unit revenue: +3.0% (at constant currency)
Unit cost: +2.1% (due to inflation, airport charges, capacity mix, and premiumization)
Net debt/EBITDA ratio: 1.6x, in line with target
Cash on hand: €9.3 billion after €741 million in debt reduction, including a €515 million bond redemption
FY 2025 Outlook (Unchanged):
Capacity growth: +4–5%
Unit cost: Low single-digit increase
CapEx: €3.2–3.4 billion
Leverage: 1.5x–2.0x
CEO Benjamin Smith credited solid demand, strong summer ticket sales, and strategic advancements such as Air France’s new La Première cabin and fleet modernisation for the performance. While cautioning about geopolitical and economic headwinds, he emphasised the group’s resilience, diversified network, and premium positioning.
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