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Air France-KLM has said travel to the US is gradually improving, as it posted record annual profits boosted by rising spending on its business and first-class cabins.
The French-Dutch carrier has been lifted by higher consumer spending on premium seats, helping pre-tax profits for 2025 to reach €1.8bn — a fourfold increase on the previous 12 months as efforts to turn around the business take hold.
Operating profit rose €400mn to above €2bn for the first time in the group’s history, while revenues increased 5 per cent to €33bn. Shares rose 10 per cent in early trading.
Legacy carriers faced questions last year about the performance of transatlantic travel, a key profit driver for long-haul European airlines, amid concerns that US President Donald Trump’s re-election would damage leisure travel to the country.
However, Air France-KLM said on Thursday that business across the North Atlantic was “improving”. While its cabin occupancy rate dipped 0.5 per cent to 88 per cent in the year, it said its yield — which measures revenue generated per customer per mile — rose 6 per cent on the routes.
The occupancy rate for first and business class cabins rose 0.8 per cent to 77 per cent. The company has recently overhauled its cabins to make space for more business and premium economy seats as it taps into the rising demand from leisure travellers for more luxurious travel experiences.
“We advanced our premiumisation strategy through enhanced customer experiences across our airlines — including new cabins, high-speed WiFi, and lounges around the world,” said chief executive Ben Smith. “Despite ongoing external uncertainty, we approach 2026 with confidence.”
January storms that affected flights predominantly from Amsterdam’s Schiphol airport would cost the company about €90mn in the first quarter of this year, the carrier said. It was forced to ground hundreds of flights and at one point came close to running out of de-icer fluid.
Shares in Air France-KLM have gained 38 per cent over the past 12 months but are down more than half since this time in 2021, leaving the group valued at just over €3bn.
