Air France-KLM flags ‘uncertainty’ despite cut in first quarter losses

Air France-KLM warned of “increasingly uncertain context” despite cutting first quarter operating losses by €161 million to €328 million due to reduced fuel prices and higher revenues.

The improved year-on-year performance came despite a shift in Easter and Ramadan as total revenues rose by 7.7% to €7.2 billion.

Passenger carryings were up by 4.5% over the same period last year to 21.8 million.

The European airline group reported “very strong” passenger yields, especially on the North Atlantic, but also in Asia and the Middle East, in Latin America and in premium cabins.

As capacity increased by 3.8%, the load factor remained broadly stable at 86%.

The group expects capacity for the year to rise by up to 5% over 2024 levels.

It faced “some headwinds” to greenhouse gas emissions cutting plans, including delays in fleet renewal due to constraints in the supply chain; engine issues with part of its new generation aircraft not allowing the group to operate them to their maximum capacity and higher fuel consumption due to longer flights time on certain routes caused by “different geopolitical circumstances”.

“These headwinds are faced by several actors in the airline industry,” the company said.

Group chief executive Benjamin Smith said: “Air France-KLM delivered a solid start to 2025. Sustained demand supported a rise in revenue across all businesses and summer ticket sales allowed us to improve cash flow generation.

“The increasingly uncertain context may bring additional headwinds going forward, yet we believe Air France-KLM is uniquely positioned to adapt and perform, thanks to its diversified network, its product and services that position us well. Together with our strong hubs and brands, these are essential assets.”