Air France-KLM Posts Record €2 Billion Profit as Premium Travel Demand Soars

Air France-KLM reported record operating profit of over €2 billion for 2025 on February 19, sending shares up nearly seven percent as the Franco-Dutch airline group's premium travel strategy delivered historic results despite ongoing cost challenges.

The milestone represents a €400 million improvement from 2024 and comfortably exceeded analyst forecasts. Chief Executive Ben Smith said the group's airlines carried over 102.8 million passengers last year while generating revenues of €33 billion, up 4.9 percent year-on-year.

Premium cabin revenues drove the performance, with La Première class up 17 percent, Business class up nine percent, and Premium/Comfort class up 18 percent compared to 2024. Growth remained particularly strong on transatlantic routes after the group invested heavily in faster Wi-Fi, upgraded airport lounges, and a revamped first class product.

However, the results masked divergent performances within the group. Air France posted operating profit of

€1.36 billion, nearly €400 million higher than the previous year. KLM's operating profit remained flat at €416 million as rising costs at Amsterdam's Schiphol airport squeezed margins.

KLM CEO Marjan Rintel warned that significant cost cutting lies ahead, describing 2026 as a "crucial year" for the Dutch carrier. The airline has already downsized 250 office jobs and reduced its management team from five to four executives.

The group also disclosed that severe winter weather in early January 2026 caused a €90 million financial setback, forcing KLM to cancel hundreds of flights at Schiphol.

Looking ahead, Air France-KLM expects capacity growth of three to five percent in 2026 and is targeting operating margins above eight percent by 2028. The company is also preparing to decide on replacing its fleet of 59 Boeing 777-300ERs, evaluating the Airbus A350-1000 and Boeing 777-9 as potential successors.