Air France-KLM (AF) Q1 2025 earnings summary

Executive summary

• Revenues increased by 8% year-over-year to €7.2bn, with all business segments contributing, including maintenance.

• Operating result improved by €161m to -€328m, supported by strong unit revenue, lower fuel prices, and operational improvements.

• Net loss narrowed to €249m, a €231m improvement year-over-year.

• Recurring adjusted operating free cash flow reached €0.8bn, with cash at hand of €9.3bn at end of March.

• Share of new generation aircraft increased by 7 percentage points to 28% of the fleet, advancing sustainability goals.

Financial highlights

• Revenue grew by 7.7% to €7.2bn, with 4% from capacity growth, 3% from unit revenues, and 1% from currency effects.

• Unit revenue increased by 3%, while unit cost rose by 2.1%.

• Operating margin improved by 2.8 points to -4.6%.

• Net debt reduced to €6.9bn, leverage ratio (Net debt/EBITDA) at 1.6x.

• Cash at hand remains strong at €9.3bn after redeeming €515m in bonds.

Outlook and guidance

• FY 2025 outlook unchanged: group capacity expected to rise 4–5% vs. 2024.

• Unit cost expected to see a low single-digit increase for FY 2025.

• Net capex guidance at €3.2–€3.4bn, leverage ratio expected between 1.5x and 2.0x.

• Forward bookings and summer ticket sales remain solid, with strong premium demand and positive pricing dynamics.

• Lower fuel costs expected to support profitability.