Air France–KLM Reports Stable €1.2 Billion Q3 2025 Profit
Air France–KLM posted an operating profit of €1.203 billion for the third quarter of 2025, remaining nearly flat compared to the same period last year. The operating margin stood at 13.1%, achieved despite challenges like weaker cargo yields, ongoing inflation in airport fees, and new ticket taxes in France and the Netherlands.
Financial and Operational Highlights
- Group revenues increased by 2.6% to €9.2 billion, driven by growth in the Passenger Network, Transavia, and Maintenance divisions.
- The Group transported 29.2 million passengers, a 4.7% rise versus Q3 2024.
- Capacity rose by 5.1%, with traffic up 4.5%, leading to a slightly lower load factor of 88.8%.
- Unit revenue at constant currency declined by 0.5%, mainly due to weaker cargo and low-cost yields, though long-haul premium cabins outperformed, supporting the Group’s “premiumization” strategy.
- Unit cost inflation slowed significantly, increasing only 1.3% thanks to productivity improvements and lower fuel prices.
Fuel and Cost Impact
Fuel prices dropped 8.9% after hedging, helping improve the quarterly result by €107 million. This gain more than compensated for higher air traffic control and airport charges, including a 41% tariff increase at Amsterdam Schiphol and France's expanded “solidarity tax” (TSBA).
Cash Flow and Leverage
In the first nine months of 2025, Air France–KLM generated €1.47 billion in operating free cash flow. This strong cash flow enabled the Group to maintain leverage at 1.6× EBITDA, staying within its targeted range.
"The Group’s focus on premium cabins validates our strategic approach even as we navigate cost pressures and regulatory impacts."
Author's summary: Air France–KLM sustained solid profitability in Q3 2025 through strategic premium offerings, cost control, and robust cash flow despite economic headwinds and regulatory challenges.