Air France-KLM: in the third quarter, revenue offsets fuel costs, KLM drives growth
In the third quarter of 2026, published on November 5, 2026, Air France-KLM offset the rise in fuel costs with its revenue. The increase in unit revenue contributed €592 million to adjusted operating income, while the rise in fuel prices reduced it by €436 million after hedging.
Adjusted operating income rose by €126 million, to €1,346 million, on revenue up 7.6%, to €9.9 billion. The bulk of this increase came from KLM, whose adjusted operating income rose by €106 million, compared with €5 million for Air France.
The publication follows a 17.5% decline in the share price over three months, noted on October 19, and a 5% intraday gain on November 4, the day before the results.
Unit revenues cover the rise in the fuel bill
The group's unit revenue rose 7.0% at constant exchange rates. It increased 6.9% on the Passage network and 21.9% in Cargo, while capacity grew by only 1.3% and traffic by 0.9%. The load factor fell 0.4 point, to 88.4%.
Unit costs remained stable, up 0.1% at constant fuel prices and exchange rates and excluding ETS. Fuel savings from new-generation aircraft (-0.4%) and continued cost control offset the cost of moving up-market (+0.5%).
The adjusted operating margin therefore rose 0.3 point, to 13.6%. On an accounting basis, operating income increased 18%, to €1,450 million, and net income rose 22%, to €938 million, compared with €768 million a year earlier.
KLM and Cargo drive growth, Air France remains stable
KLM's revenue rose 11.7%, to €4,011 million, and its adjusted operating margin gained 1.6 points, to 11.4%. Its unit costs fell, mainly thanks to better fleet utilisation and lower costs of crewed aircraft leasing.
At Air France, adjusted operating income remained stable, at €811 million, and the adjusted operating margin fell 0.7 point, to 13.5%. Unit cost increases outpaced unit revenue growth, mainly due to staff costs, sales expenses, and airport and air traffic control charges.
Freight transport revenue rose 24.9%, to €566 million, supported by the shift of sea freight linked to disruptions around the Suez Canal and the Strait of Hormuz, as well as demand linked to artificial intelligence.
Flying Blue generated €77 million in adjusted operating income (+€23 million), while Transavia's adjusted operating margin fell 1.2 points, to 16.3%.
Over nine months, net income declines and 2026 targets are tightened
Over nine months, adjusted operating income rose by €173 million, to €1,824 million, but net income fell 25%, to €877 million, compared with €1,168 million. The gap is mainly due to operational currency effects after hedging, which were negative at €174 million versus a gain of €519 million a year earlier.
For 2026, the group lowered its capacity growth forecast to about 2%, from 2% to 3% previously, and specified the expected rise in unit costs at about 1%. The fuel bill is now estimated at $9.2 billion, compared with $8.9 billion indicated in the previous quarter.
Leverage remained stable at 1.6 times, and liquidity reached €10.5 billion. Judging the Back on Track programme insufficient to achieve the ambition of an adjusted operating margin above 8%, KLM announced additional measures, including a productivity target of at least 8%.
The group thus enters the final part of the year with quarterly profitability driven by KLM and freight, while Air France saw its adjusted operating margin decline due to its costs.
