Air France-KLM (AF) Q4 2025 earnings summary

Executive summary

• Achieved record operating result of €2.0 billion in FY 2025, with a 6.1% margin, reflecting disciplined execution, premiumization, and cost control despite external challenges.

• Group revenues reached €33.0 billion, up 4.9% year-over-year, with over 100 million passengers carried and premium cabins now over 36% of group revenue.

• Sustainability efforts advanced with 35% next-generation aircraft, increased SAF usage, and industry recognition, though GHG intensity target for 2025 was not fully met.

• Strong cash generation and balance sheet improvement, with net debt/EBITDA at 1.67x and equity at €2.4 billion, back to pre-COVID levels.

• Premiumization and brand enhancement initiatives drove revenue growth, especially in premium cabins and ancillary services.

Financial highlights

• Net income reached a record €1.8 billion, including €700 million from unrealized FX results; operating result at €2.0 billion, up €400 million year-over-year.

• Recurring adjusted operating free cash flow was €1.0 billion, up €800 million year-over-year; IFRS equity rose to €2.4 billion.

• Ancillary revenue grew 23% to €2.1 billion, with seat selection and hand luggage driving growth.

• Cash at hand stood at €9.4 billion, well above targeted liquidity.

• Q4 2025 revenues were €8.2 billion (+3.9% YoY); Q4 operating result stable at €393 million.

Outlook and guidance

• FY 2026 capacity expected to grow 3–5%, with long-haul up 4% and Transavia up 10%; unit cost guidance for 2026 is 0–2%, including 0.5% from premiumization.

• Net capex for 2026 projected at ~€3 billion; leverage ratio targeted between 1.5x and 2.0x.

• Margin ambition remains above 8% by 2028, with a trajectory from 6% in 2025.

• Q1 2026 operating result to be impacted by ~€90 million due to severe weather in Amsterdam and Paris.