Air France-KLM (AF) Q3 2025 earnings summary

Executive summary

• Q3 2025 operating margin was stable at 13.1%, with revenue up 3% year-over-year to €9.2 billion, driven by a 5% increase in passenger traffic to 29.2 million and strong premium cabin performance.

• Premiumization strategy advanced, with premium cabins showing robust revenue growth and 32% of the fleet now next-generation aircraft.

• Strong cash generation, with operating free cash flow at €1,474 million for 9M 2025, up from €28 million in 9M 2024.

• Strategic expansion of network and partnerships, including a 2.3% stake in WestJet and new route launches in Asia, the Caribbean, and North America.

• Net income for 9M 2025 was €1,168 million, a significant increase from €510 million in the prior year.

Financial highlights

• Q3 2025 revenue: €9.2bn (+3% YoY); operating result: €1,203m (+€23m YoY); operating margin: 13.1% (stable YoY).

• 9M 2025 revenue: €24.8bn (+5.3% YoY); operating result: €1,611m (+€407m YoY); net result: €1,168m (+€658m YoY).

• Operating free cash flow for nine months at €1.47bn; recurring adjusted operating free cash flow at €715m.

• Net debt at €7.8bn as of September 30, 2025, up €455m since year-end 2024; leverage ratio at 1.6x.

• Cash at hand €9.5bn at end-September 2025, above target liquidity.

Outlook and guidance

• Group capacity growth for FY 2025 expected at 4–5% versus 2024; Transavia expected above 10%.

• Unit cost increase expected at the low end of the 1–3% range for the full year; net CapEx forecasted between €3.2–3.4 billion.

• Leverage ratio targeted between 1.5x and 2.0x.

• Premiumization expected to add about 1% to unit revenues and margins over the next three years.

• No dividend planned until hybrid debt and social charge repayments are completed.