Air France-KLM: Revenue Up 4.4%, Net Result Still Negative in Q1
Air France-KLM recorded a revenue of 7.479 billion euros in the first quarter of 2026, up by 4.4% year-over-year, supported by an increase in passenger revenue despite a decline in cargo. The current EBITDA significantly increased to 728 million euros, from 396 million euros a year earlier. However, the group remains at a net loss of 252 million euros, notably due to a 368 million euro fine related to a cargo litigation, while the group states it cannot yet quantify the impact of instability in the Middle East.
Revenue Growth and Decrease in External Expenses
Ordinary revenues reached 7.479 billion euros, up by 314 million euros compared to the same period in 2025 (7.165 billion). Passenger network revenues were 5.500 billion euros, up from 5.244 billion a year earlier, an increase of 256 million euros. Cargo revenues were recorded at 505 million euros compared to 521 million in 2025, marking a decline of 16 million euros. External expenses contracted to 4.553 billion euros from 4.787 billion euros in 2025, a decrease of 234 million euros. Fuel and sustainable aviation fuel (SAF) expenses decreased to 1.355 billion euros from 1.593 billion euros the previous year. Personnel expenses amounted to 2.456 billion euros from 2.392 billion in 2025, an increase of 64 million euros.
Significant Improvement in Current EBITDA, Yet Net Result Remains Negative
Current EBITDA reached 728 million euros, compared to 396 million euros in Q1 2025, marking an increase of 332 million euros (83.8%). This improvement reflects the control of external costs and the increase in passenger revenues. However, the operating loss was recorded at 25 million euros compared to a loss of 328 million euros a year earlier. The net loss attributable to the group slightly reduced to 287 million euros, from 292 million euros in Q1 2025. The result per share (basic and diluted) is at -1.15 euros compared to -1.16 euros the previous year, reflecting a slight improvement. This net loss occurred in a quarter marked by the payment of a 368 million euro fine related to a cargo litigation, as well as a negative financial result of 282 million euros, including a net cost of financial debt of 120 million euros and other net financial charges of 162 million euros.
Middle Eastern Situation and Unquantified Impact on Operations
Since February 28, 2026, the war in the Middle East has affected the group's operations and led to the suspension of flights to Beirut, Dammam, Dubai, Jeddah, Medina, Riyadh, and Tel Aviv. The closure of a significant portion of the airspace in the conflict zone has extended flight durations on several routes operated by the group. Air France and KLM have reallocated capacities and adjusted flight schedules. A fare increase was implemented starting March 11, 2026, in response to rising jet fuel prices. The group states that it 'is not in a position to quantify the current instability's impact' on its operations and financial results at this stage, due to uncertainties regarding the conflict's evolution and the risks it poses on fuel prices and supplies. Furthermore, KLM and Gategroup agreed in March 2026 on the sale of 75% of KLM Catering Services to Gategroup, with KLM retaining a 25% stake. This transaction, expected to be completed in the second quarter of 2026, has no impact on the consolidated accounts as of March 31, 2026.
