Air France-KLM profit falls on fuel costs as KLM cuts around 1,000 positions

Third-quarter results beat forecasts

Air France-KLM posted a third-quarter operating profit of 1.34 billion euros, above the 1.1 billion euros analysts projected in a company-compiled consensus, according to RTE and newsORF. Chief executive Ben Smith said demand in key strategic markets lifted unit revenue, while cost discipline and a well-managed fuel bill kept unit costs broadly stable. Reports disagree on the nine-month net profit: 877 million euros in a Spanish account (Europa Press), against 775 million euros in Portuguese reports (Diario de Noticias and Noticias ao Minuto). The fall is put at 25% in the first and 26% in the second. Fuel alone cost the group 436 million euros in the third quarter. Revenue for the nine months reached 26,672 million euros, and the group carried 80.3 million passengers, up 2.7%, at an 87.5% load factor.

Analyst consensus1.1

Reported operating profit1.34

Analyst consensus

1.1 billion euros

Reported operating profit

1.34 billion euros

Data from the article text

Fuel bill and capacity

Fuel remained the main pressure on the group's forecasts. Air France-KLM now expects its 2026 fuel bill to reach 9.2 billion US dollars, up from the 8.9 billion dollars it forecast previously. Diario de Noticias put the revised estimate at about 8.2 billion euros at the current exchange rate. The group also trimmed its capacity growth outlook for 2026 to 2%, replacing an earlier range of 2% to 3%. Earlier in the year it had added capacity toward Asia and East Africa, then moved capacity to the Americas in the third quarter as Gulf carriers restored their own capacity on those routes to near normal levels. Spot Northwest European jet fuel prices fell 12% in the week of the results, to their lowest level since August, tracking a wider drop in oil prices. At the end of September, 39% of the fleet was new-generation aircraft, seven percentage points higher than a year earlier, and the group aims for up to 80% by 2030.

Earlier forecast8.9

Current forecast9.2

Earlier forecast

8.9 billion US dollars

Current forecast

9.2 billion US dollars

Data from the article text

KLM overhaul deepens

Bloomberg reported that Air France-KLM will deepen its overhaul of the Dutch subsidiary as higher fuel expenses and a cost of living crisis deter some passengers from flying. KLM said in a separate statement that the number of positions at the airline will drop by almost another 15%, which means around 1,000 fewer positions out of 5,000 in total affected by the latest reorganisation. The measures include fleet modernisation and a reorganisation of ground handling, cargo, and engineering and maintenance. KLM chief executive Bas Brouns described the measures as 'far-reaching' and 'sometimes painful'. He tied the programme to the group's financial targets.

“Improving our annual earnings by €1 billion is essential to delivering our strategy.”