Air France-KLM reported “solid” Q2 revenues and a positive operating result on Thursday following increased demand for its premium products.
The European airline group’s revenue increased 6.2 percent year over year to €8.4 billion, driven by “sustained” premium demand and lower fuel costs. The company posted an operating result of €736 million, which marked an improvement of €223 million compared to Q2 2024.
Group revenue per available seat kilometer in the second quarter was up 2.4 percent year-on-year, driven by strong yield performance. Group capacity and traffic also increased by 4.2 percent, while the load factor remained stable at 87.8 percent.
Passenger yields were “strong” in the North Atlantic region, despite “tariff turbulence,” and increased across Asia, the Middle East and Latin America, led by premium demand.
“Air France-KLM delivered a solid second quarter, with revenue growth and improved margins, reflecting the strength of our diversified network and the disciplined execution of our strategy,” group CEO Benjamin Smith said in a statement. “Although the external environment remains complex, Air France-KLM continues to demonstrate its resilience and is well positioned to achieve its targets.”
Smith added the group is advancing the “premiumization” of its products following the introduction of Air France’s La Première first class product.
In the first half of the year, revenue from the premium segment grew by 11 percent year-on-year, a positive trend that was observed across all regions, the company said. Demand for premium economy products for both Air France and KLM continued, with a 27 percent year-on-year increase in revenue.
Air France reported a 7.9 percent increase in revenue to €5.2 billion and a positive operating result of €490 million, an improvement of €295 million compared to the same period last year. This is despite the increase in France’s solidarity tax on flight tickets, which is expected to impact the airline’s 2025 operating result by between €90 and €170 million.
KLM Group’s revenue for the quarter increased 4 percent year over year to €3.4 billion and reported an operating result of €197 million, which was €63 million less than the second quarter of 2024.
The Dutch carrier said the decline was driven by increased costs—including consecutive collective wage increases and a 41 percent hike in airport charges at its Schiphol hub—along with “operational problems” with available fleet in May and June.
The group reconfirmed its full-year 2025 outlook and expects capacity (measured in available seat kilometers) to increase by between 4 and 5 percent compared to 2024. However, it said it will maintain an “agile approach” to forecasting due to current macroeconomic uncertainty.
The earnings report also pointed to the group’s efforts to increase the use and demand of alternative aviation fuels. At the Paris Air Show in June the group signed an agreement with the French government and industry partners to support the “industrialization” of alternative aviation fuel projects. It pledges to also help set national production and consumption targets for alternative aviation fuel and to develop competitive financing models.
In parallel, the group also signed an agreement with Airbus last month to help the aircraft manufacturer’s employees reduce the carbon footprint of their business travel through its ‘Corporate SAF’ program. This scheme allows Airbus employees to book fares that include a voluntary contribution towards the purchase of alternative aviation fuels, directly embedded in the ticket, the group said.
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