Air France-KLM (AF) Q1 2026 earnings summary

Executive summary

• Group revenues rose 4.4% year-over-year to €7.5bn, driven by strong passenger network performance, premiumization, and resilience amid geopolitical turmoil.

• Operating result improved by €301m to -€27m, reflecting disciplined cost management and premiumization strategy.

• Passenger numbers increased 2.3% to 22.3 million, with capacity up 4.0% and load factor at 86.3%.

• Fleet renewal accelerated, with 36% of the fleet now new-generation aircraft, up 8 points year-over-year.

• Strong cash flow with recurring adjusted operating free cash flow at €884m, up €101m year-over-year.

Financial highlights

• Unit revenue per ASK up 3.4% at constant currency; unit cost per ASK up 0.5%.

• Operating margin improved by 4.2 points to -0.4%.

• Net income at -€252m, a slight deterioration of €3m year-over-year.

• Net debt reduced to €8.0bn at end of March 2026, leverage ratio at 1.5x.

• Cash at hand at end of March 2026 was €10.6bn, up €1.3bn from March 2025.

Outlook and guidance

• FY 2026 capacity growth revised to +2% to +4% (previously +3% to +5%) due to geopolitical uncertainty.

• Unit cost expected to rise 0% to +2%, including +0.5% from premiumization; net CapEx to be below €3bn.

• Fuel bill for FY 2026 expected at USD 9.3bn, up USD 2.4bn from FY 2025, with Q2 impact of USD 1.1bn.

• Bookings for Q2 and summer remain strong, with no signs of demand weakening despite higher prices.

• Early adoption of IFRS 18 is under consideration for June 2026 reporting.