Air France-KLM (AF) investor relations material

Executive summary

• Group revenues rose 9.9% year-over-year to €9.3bn in Q2 2026, driven by robust premiumization, strong cargo demand, and growth across all business segments.

• Adjusted operating profit was €484m (5.2% margin), down €251m year-over-year, with recurring adjusted operating free cash flow at €928m for H1 and cash at hand exceeding €10.3bn.

• Passenger numbers increased 3.9% to 28.3 million, with premium cabins accounting for 38.5% of passenger revenues and outpacing capacity growth.

• Strategic moves included a binding offer for up to 49.9% in TAP Air Portugal and plans to increase the SAS stake to 60.5%, aiming to expand network reach in Europe.

• Fleet renewal advanced, with new-generation aircraft now comprising 38% of the fleet, targeting 80% by 2030.

Financial highlights

• Net income for Q2 2026 was €190m, down €459m year-over-year, with H1 2026 revenues totaling €16.8bn, up 7.4% year-over-year.

• Unit revenue increased 8.7% year-over-year; cargo unit revenue surged 26.7%.

• Fuel bill rose by €804m–€900m due to Middle East conflict, with 85–86% of the additional cost recaptured through pricing and cost management.

• Cash at hand stood at €10.3bn at June 2026, up €0.9bn from June 2025.

• Net debt stable at €8.4bn; leverage ratio improved to 1.6x.

Outlook and guidance

• FY 2026 fuel bill expected at USD 8.9bn, up USD 2.0bn from FY 2025 but €0.4bn below previous estimates.

• Capacity growth for FY 2026 revised to +2% to +3%, with unit cost guidance unchanged at 0% to +2%.

• Net capital expenditures projected below €3bn; leverage target between 1.5x–2.0x.

• Booking trends show late bookings and some softness in August, but Transavia bookings are up 2%.