Air France-KLM (AF) Q1 2025 earnings summary

Executive summary

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

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

Financial highlights

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

• EBITDA increased to €396m, up €220m year-over-year, with margin at 5.5%.

• Net debt reduced to €6.9bn, down €0.4bn from year-end 2024; leverage ratio at 1.6x.

• Cash at hand stood at €9.3bn after redeeming €500m–€515m in bonds.

• Unit revenue per ASK up 3.0% at constant currency; unit cost up 2.1%.

Outlook and guidance

• FY 2025 outlook unchanged: capacity expected to rise 4–5% vs. 2024, with low single-digit unit cost increase.

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

• Group remains agile in network deployment and maintains flexibility to adjust CAPEX if market conditions shift.

• Forward bookings and demand for Europe inbound travel remain robust despite macro uncertainty.

• Lower fuel costs expected to support profitability.