Air France-KLM Hits €2 Billion Profit Milestone as Premium Anchors Outlook
Photo Credit: An Air France Boeing 777-300ER on the runway in Los Angeles. Vincenzo Pace / Vincenzo Pace
Skift Take
Premium travelers, led by U.S. outbound, are keeping Europe’s network carriers profitable even as demand in the rest of the plane – and other parts of the world – softens.
Air France-KLM has topped €2 billion ($2.4 billion) in annual operating profit for the first time – powered by resilient transatlantic demand and sustained strength in premium travel. The milestone represented a roughly €400 million improvement from the prior year and sent shares sharply higher on Thursday.
Executives said North Atlantic routes remain the airline’s strongest performer despite geopolitical tensions and broader concerns about inbound U.S. tourism trends heading into 2026.Â
Upscale products proved central to 2025's performance. The airline reported stronger yields across its premium cabins, helping offset weaker pricing in European economy markets.
Air France-KLM Group CEO Ben Smith struck a confident tone following the annual results, highlighting U.S. point-of-sale demand as a particular source of strength. He said widely discussed changes in travel behavior have yet to appear in the company's own booking data.
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