Air France-KLM (AF) Q2 2026 earnings summary

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, as higher fuel costs offset revenue gains.

• Passenger numbers increased to 28.3 million, with premium cabins accounting for 38.5% of passenger revenues and premium segment revenues growing faster than capacity.

• Recurring adjusted operating free cash flow reached €928m for H1 2026, with cash at hand exceeding €10.3bn.

• Strategic consolidation advanced with a binding offer for up to 49.9% of TAP Air Portugal and plans to increase the SAS stake to 60.5%.

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

• Cash at hand stood at €10.3bn, up €0.9bn from June 2025, and leverage ratio improved to 1.6x.

• Net debt at June 2026 was €8.4bn, stable versus December 2025.

• Operating free cash flow for H1 2026 was €1,173m, down from €1,353m year-over-year.

Outlook and guidance

• FY 2026 fuel bill forecast 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 at 0% to +2%.

• Net capital expenditures expected below €3bn; leverage ratio target remains 1.5x–2.0x.

• Booking trends show strong forward load factors, with some softness in August and late booking patterns.

• Midterm margin target (>8%) for 2028 reaffirmed despite ongoing uncertainties.