Profits at KLM up Despite Fuel Cost Increases - DutchNews.nl
The Franco-Dutch carrier posted second-quarter adjusted operating profit of 484 million euros and cut full-year capacity plans as premium travel demand held up.
- On Thursday, Air France-KLM Group shares rose 1.4% after the airline beat quarterly profit expectations, though the group lowered full-year capacity guidance with a 1% drop in short and medium-haul flights.
- Ongoing conflict in the Middle East has forced the airline to trim capacity, marking a second reduction from the 3% to 5% forecast made in February, while fuel costs are projected at $8.9 billion for 2026.
- Revenue reached 6.9 billion euros for the first half of 2026, an 8% increase, as CEO Benjamin Smith cited "steady demand for premium travel" driving strong commercial performance.
- Separately, the group submitted a binding offer on Wednesday for at least 44.9% of Portugal's TAP, seeking access to lucrative slots linking Lisbon with Brazil and Portuguese-speaking African countries.
- CEO Marjan Rintel cautioned, "We must remain realistic: one good half-year does not make KLM structurally strong and robust," though the group maintains 3.5 billion in undrawn credit lines for consolidation opportunities.
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The airline group limits the impact of the surge in energy costs thanks to an increase in its activity and ticket prices in the second quarter The Air France-KLM air transport group has
Air France-KLM will cancel flights in the final months of this year due to high fuel costs. According to Chief Financial Officer Steven Zaat, the number of flights has not yet been fixed and depends, among other things, on developments in kerosene prices. This primarily concerns short- and medium-haul flights, and therefore not long intercontinental routes.
Despite rising kerosene prices and the war in the Middle East, Air France-KLM still managed to make a profit. During the presentation of the quarterly figures, it became apparent that the airline had made a profit of 190 million euros over the past three months. A year earlier, the company posted a loss of 459 million euros. Revenue was also higher in the past six months than in the same period last year. Due to the war in the Middle East, Air…
Air France, its sister Dutch company KLM and the low-cost company Transavia suffered from the effects of the war in the Middle East. "It was a hard quarter," pointed out financial director Steven Zaat, during a conference call. The fuel bill increased by more than 800 million euros over the quarter compared to the same period of 2025. In 2026, it is expected to amount to 8.9 billion dollars, compared to 6.9 billion in 2025. The net profit fell f…
Air France-KLM reduced its capacity projection for the year after net profit fell in the second quarter, impacted by the increase in fuel prices. Exclusive material for subscribers. To have full access, access the link of the material and register.
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