Air France-KLM reduces Q1 loss with increased revenue, cautious about future challenges

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Air France-KLM reduces Q1 loss with increased revenue, cautious about future challenges

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Benjamin Smith CEO of the Air France–KLM | Official Website

By Sky Industry News

May 3, 2025

Air France-KLM has reported its first-quarter results, showing a reduction in net loss to €249 million ($283 million). This represents an improvement of €231 million ($262.7 million) compared to the same period last year. The revenue increased by 7.7% year-on-year to €7.1 billion ($8 billion), as the group's capacity, measured in available seat kilometers (ASK), rose by 3.8%.

The airline reported an average load factor decline by 0.4% to 86%. Air France-KLM carried a total of 21.8 million passengers during the quarter, with 17.2 million passengers flying on Air France and KLM, and 4.5 million on Transavia flights. Ben Smith, CEO of Air France-KLM, described the beginning of the year as solid, with summer ticket sales boosting cash flow.

Smith said, “This quarter, we continued to deliver on our ambitious strategic roadmap, notably with the successful launch of Air France’s new La Première experience – a key milestone in the ongoing premiumization of our offer, and with the continued integration of the latest generation aircraft across our airlines.”

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In the first quarter, Air France and KLM reported revenues of €6 billion ($6.8 billion), with earnings before interest, taxes, depreciation, and amortization (EBITDA) at €339 million ($385.5 million). However, they also logged a negative operating result with a loss of €193 million ($219.3 million). The group mentioned the improvement in operational results by €215 million ($244.3 million) due to factors such as lower fuel prices and higher revenues.

Air France-KLM noted that North Atlantic revenue increased by 11%, despite capacity remaining flat year-on-year. Nonetheless, it flagged challenges such as Transavia's operational loss of €205 million ($232.7 million) due to factors like geopolitical instability and poor weather conditions in Spain.

Smith acknowledged potential economic challenges, yet emphasized Air France-KLM's resilience due to its diversified offerings. "Air France-KLM believes it is uniquely positioned to adapt and perform," he remarked. The company expects capacity to rise by 4-5% year-on-year in 2025 while anticipating an increase in unit costs by low single digits.

The company has positioned itself well financially, ending the quarter with €9.3 billion ($10.5 billion) in cash and noting a positive recurring adjusted operating cash flow of €783 million ($889.5 million). With its significant cash reserves, Air France-KLM could pursue further investment opportunities in Europe.