Air France-KLM has reported an operating result of €2bn for 2025, up €0.4bn from 2024, marking a record milestone for the airline group, it reported today (February 19).
The group's shares soared over 11% shortly after the results announcement.
“We advanced our premiumization strategy through enhanced customer experiences across our airlines —including new cabins, high-speed Wi-Fi, and lounges around the world — all while making significant progress toward our sustainability ambitions thanks to fleet renewal and increased SAF usage," said Air France-KLM group CEO Benjamin Smith.
The company said demand for premium was “gaining traction”, improving its profitability.
“Despite ongoing external uncertainty, we approach 2026 with confidence and a commitment to executing our strategic roadmap with rigor and discipline in order to reach our medium-term goals.”
For 2026, the group guided capacity to be up 3-5% compared to last year, with unit costs either flat to up 2%. Net capital expenditure is expected to be around €3bn for the year. Leverage ratio is set to be between 1.5x and 2.0x.
For the full year, the group in total carried over 100 million passengers — marking a 5% increase on 2024. Group capacity was up 4.9%, though consolidated load factor was down 0.5 percentage points to 87.2%.
Revenues were up 4.9% to a record €33bn for the year. This was driven by its passenger network and maintenance revenue growth, as well as revenue growth from its low-cost airline Transavia.
During the company's earnings call, management said the airline's hand luggage ancillary revenue had supported the growth.
The low-cost airline's ancillary revenues added €800 million in 2025 to the results. Air France and KLM generated €1.2bn in ancillary revenue.
Transavia's revenues were up 12.3% in 2025 to €3.5bn. However, its operating result fell €52 million to a negative €49 million. This was a result of France's new French Aviation Solidarity Tax (TSBA) since March 1, 2025, as well as increased competition during the year and increase in Schiphol tariffs.
Air France's revenues were up 5.3% to €20.2bn and its operating result was up €382 million to €1.4bn in 2025.
During the earnings call, Smith said the it hopped to have 90 to 95 A220s in place before the end of the decade, with the variant exclusively operating its medium-haul mainline routes for Air France. He added that the company will look at a replacement for its long-haul Boeing 777-300ER aircraft “probably sooner rather than later”. He said they were considering both Airbus and Boeing to replace this fleet.
KLM's revenues increased 3.9% to €13.2bn, while its operating result was up relatively flat, up €1 million to €416 million.
The company said Air France-KLM network will have around 4% capacity increase for long-haul routes in 2026, while short- to medium-haul routes will remain stable. Transavia's capacity will be up 10%.
The group's maintenance business performed well, with revenues up 9.5% to €5.6bn and its operating result up €97 million to €267 million.