Air France-KLM reported strong Q1 revenues on Wednesday (30 April) and remains positive for 2025 despite uncertainty over US tariff threats.
The European airline group saw revenues increase by 7.7 per cent year-on-year to €7.2 billion, largely driven by premium demand and lower jet fuel prices, and reported an operating loss of €328 million, which marked an improvement of €161 million compared to Q1 2024.
The better-than-expected result was boosted by “sustained” demand across both airlines and a reduction in fuel prices, the airline group said.
Despite recent market volatility and ongoing uncertainty regarding US president Trump’s tariff plans, the group’s full-year 2025 outlook remains unchanged, with expectations to increase capacity by between 4 and 5 per cent compared to 2024.
“The increasingly uncertain context may bring additional headwinds going forward, yet we believe Air France-KLM is uniquely positioned to adapt and perform, thanks to its diversified network, its product and services,” Group CEO Benjamin Smith said in a statement.
Group revenue per available seat kilometres (ASK) in the first quarter was up 3 per cent year-on-year. Group capacity and traffic also increased 3.8 per cent and 3.3 per cent, respectively.
Load factor remained stable at 86 per cent, while passenger yields were “very strong”, particularly on transatlantic routes and across the airlines’ premium cabins. The group pointed to “significant growth” of KLM’s Premium Comfort cabin and the recent “successful launch” of Air France’s new La Première product.
Air France reported a 7.8 per cent increase in revenues to €4.4 billion and an operating loss of €183 million, which marked a €66 million improvement on the same period last year.
KLM Group saw revenue for the quarter increase 7.7 per cent year-on-year to €2.9 billion and reported an operating loss of €199 million, a notable improvement on the €290 million loss reported in the first quarter of 2024.
The Dutch carrier said a “stable operation and better fleet availability” contributed to this improved result, adding that the initial effects of its €450 million restructuring process, announced in October, are now “becoming visible”.
KLM CFO Bas Brouns said: “We expect the positive impact of the measures to increase further as the year progresses. This is necessary because, despite the revenue growth, profitability is under pressure due to rising costs of materials, personnel, and airport charges.”
In its Q1 earnings report, Air France-KLM said it faced recent “headwinds” to its GHG emissions reduction targets due to supply chain constraints that have delayed fleet renewal plans, engine issues with part of its new generation aircraft fleet and higher fuel consumption due to longer flight time on certain routes caused by “different geopolitical circumstances”.
The group took delivery of nine new generation aircraft in the first quarter and phased out three older generation aircraft. As of 31 March, 28 per cent of its fleet was composed of new generation aircraft, with a goal to reach 80 per cent by 2030.