Air France-KLM third-quarter net profit, Digi Mart USA News: The Franco-Dutch air transport group Air France-KLM announced on Thursday that its net profit rose 22% in the third quarter, the peak season period, thanks to higher revenue per passenger. The profit reached 938 million euros.
Over the first nine months of the year, however, net profit fell 25% to 877 million euros. Against a backdrop of high fuel costs, the group also announced in a statement a set of new cost-saving measures for its KLM division (KLM and Transavia Netherlands), which is less profitable than Air France (Air France and Transavia France).
These measures include a revision of collective bargaining agreements aimed at “strict control of the change in payroll costs.” They also involve reorganizing “certain activities related to ground operations, cargo and maintenance,” sometimes through outsourcing and sometimes through reintegration. Finally, the group will stop operating the “oldest” aircraft, which consume the most kerosene.
Air France-KLM chief executive Benjamin Smith praised “a resilient third quarter.” “Demand in our key strategic markets, combined with strong commercial discipline, led to higher unit revenues, while continued cost control, together with well-managed fuel costs, kept unit costs broadly stable,” he said.
Revenue rose 8% during the quarter to 9.916 billion euros. At constant exchange rates, the increase was even stronger, at 12%.
“Strong unit revenues fully offset the impact of higher fuel prices, against a backdrop of crisis in the Middle East,” the group said. “In addition, rigorous cost control limited the increase in unit costs to just +0.1%.”
Air France-KLM said it had locked in the price of 54% of the fuel it expects to consume in 2027 through hedging contracts, compared with 68% for 2026. It also raised its estimate of its 2026 fuel bill to 9.2 billion dollars, 300 million dollars more than its previous forecast.
