Air France-KLM's strategic focus on premiumization continues to drive revenue growth, with premium cabin revenues showing strong performance with La Première up 17%, Business class up 9%, and Premium/Comfort class up 18% compared to 2024. The fleet continues to modernise, with 35% of new-generation aircraft, an increase of 8 points over one year. However, a 6.1% operating margin, while a record for Air France-KLM, remains below peers such as Lufthansa and IAG and far below low-cost carriers.
Cyborg Score Rationale
FY2025 results indicate a structurally improving Air France-KLM, with stronger cost discipline, pricing power, and financial stability. The group achieved record profitability and strong cash generation. However, part of the record results is cyclical, margins remain modest compared to peers, and exposure to external shocks persists.
Top Insights
Ancillary revenue reached €2.1 billion in 2025, representing a 23% increase over 2024, marking the second consecutive year of double-digit growth in segments like seat selection and hand luggage options.
KLM CFO Bas Brouns stated: "We have delivered stable results, but our costs are rising faster than our revenues, leaving KLM vulnerable and requiring structural decisions."
The Group plans to increase its stake in SAS to 60.5% in the second half of 2026, subject to regulatory approval, which will accelerate the integration of SAS into Air France-KLM's global strategy.
The ~7% decrease in hedged fuel costs significantly boosted operating profit, though this benefit is largely cyclical and could reverse with rising oil prices.
Named Competitors
Lufthansa Airlines — Major European full-service carrier with stronger margins
International Airlines Group — Leading European airline group with competitive margin profile
Ryanair — Low-cost leader in Europe with significantly higher operating margins
Recent Developments
(February 2026) Record FY2025 results with €2 billion operating profit and 6.1% margin; stock surged 7.42%
(February 2026) Extended Marjan Rintel as KLM CEO for four-year term; mandate focused on accelerating transformation
(2025) Fleet renewal accelerated with 14 new aircraft added; SAF incorporation increased to 2.9%
(2026) Q1 operating result impacted by €90 million weather event in Amsterdam and Paris
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