Air France-KLM third-quarter profit and KLM cost cuts, Digi Mart USA News: The Franco-Dutch airline group saw its net profit rise 22% in the third quarter, supported by the summer travel season. To absorb higher kerosene costs, its Dutch division will cut jobs and reorganize its structure.
Air France-KLM closed its peak season with third-quarter net profit of 938 million euros, up 22%. The result pushed the company’s share price up about 10% at the opening of trading in Paris.
Over the first nine months of the year, however, which were marked by the Middle East crisis and rising kerosene prices, profit fell 25% to 877 million euros.
Fuel remains the main area of concern. The company said a tonne of kerosene will cost nearly $1,600 in the current quarter, and it expects roughly $1,400 to $1,500 in the first half of 2027.
KLM, which includes KLM and Transavia Netherlands and is less profitable than Air France, has therefore announced a new round of savings. The number of positions at KLM, already reduced in recent years, will fall by a further 15%.
About 5,000 positions have been or will be reorganized, with a different way of working.
The company’s stated goal is an annual improvement in results of one billion euros. The measures affect several fronts.
Collective agreements will be revised to strictly limit changes in the wage bill. Some activities related to ground operations, cargo and maintenance will be reorganized, in some cases outsourced and in others brought back in-house.
The group also plans to stop operating its oldest aircraft, which consume the most kerosene.
For KLM employees, this means revised work organization and even leaner staffing. For travelers, the decisions concern mainly the fleet and ground operations, two levers that weigh on operating costs.
On the financial side, quarterly revenue rose 8% to 9.916 billion euros, and 12% at constant exchange rates. Management described a resilient quarter, with solid demand in key markets, strong commercial discipline, and unit revenues that offset the impact of higher fuel prices amid the Middle East crisis.
Unit costs remained nearly stable, up 0.1%.
The group has hedged 54% of the fuel it expects to consume in 2027, compared with 68% in 2026, while keeping an undisclosed price ceiling above which it does not sign contracts. It also raised its 2026 fuel bill forecast by $300 million, to $9.2 billion.
One uncertainty remains. The group still benefits from the difficulties of some competitors, and it is unclear how long the rerouting around the Gulf will continue to support travel to Asia.
