Air France-KLM Exceeds 2 Billion Euros in Operating Income by 2025
Air France-KLM announced on Thursday its annual results for 2025, showcasing an operating income of 2.0 billion euros, surpassing this symbolic threshold for the first time in its history. The group transported 102.8 million passengers and achieved an operating margin of 6.1% on revenue up by 4.9% to 33.0 billion euros.
Historic Financial Performance
In 2025, Air France-KLM recorded a current operating income of 2.0 billion euros, an improvement of 403 million euros compared to the previous year. This historic performance is attributed to several factors. The unit revenue per available seat kilometer increased by 1.0% at constant exchange rates, driven by the Passenger network which saw a 2.0% increase. The decrease in fuel prices, after hedging, generated a gain of 394 million euros. Concurrently, the group limited the rise in its unit cost to 1.2%, reflecting disciplined cost management and productivity gains, despite the burden of air traffic control charges and airport fees, particularly at Schiphol. Revenue grew by 4.9% to reach 33.0 billion euros, supported by the Passenger network, Maintenance activities, and Transavia. The group's capacity increased by 4.9% while traffic rose by 4.3%. The operating margin was established at 6.1%, an improvement of 1.0 percentage point from 2024.
Strong Cash Flow and Debt Management
The recurring adjusted free cash flow from operations stood at 1.030 billion euros in 2025, up by 760 million euros year-on-year. The unadjusted free cash flow from operations reached 1.997 billion euros, driven by a current EBITDA increase of 814 million euros. The group had liquidity of 9.4 billion euros at the end of December 2025, above its target range of 6 to 8 billion euros. Net debt amounted to 8.392 billion euros, an increase of 1.060 billion euros, mainly due to the repayment of convertible hybrid bonds and the increase in leasing contracts related to fleet renewal. The debt leverage ratio remained at 1.7x, in line with the group's ambition to keep it between 1.5x and 2.0x. In terms of ecological transition, the group accelerated the renewal of its fleet with 35% of new generation aircraft in operation by the end of December 2025, an increase of 8 points over the year. The incorporation of sustainable aviation fuel reached 2.9% of total fuel consumption, well above the legal mandates of approximately 1.2%.
Outlook for 2026 and Long-term Goals
For 2026, Air France-KLM anticipates a capacity increase of 3 to 5%, a unit cost increase between 0% and 2%, of which 0.5% is related to premiumization, net investment expenditures of about 3 billion euros, and a debt leverage ratio between 1.5x and 2.0x. In early January 2026, the group issued 650 million euros in unsecured senior bonds with a coupon of 3.875% and a maturity of five years, benefiting from the lowest credit spread ever achieved. In the fourth quarter of 2025, the group welcomed 24.6 million passengers, up by 4.8% year-on-year, while the operating income stood at 393 million euros, remaining stable. In the long term, the group aims for an operating margin above 8% by 2028, a significantly positive adjusted free cash flow from operations, a reduction in unit cost, and a debt leverage in the investment grade category.
