Despite a profit up 22% in the third quarter, Air France-KLM announces new savings at KLM

The Franco-Dutch air transport group Air France-KLM announced on Thursday a net profit up 22% in the third quarter, that of the high season, thanks to the increase in its turnover per passenger. This profit reached 938 million euros. Over the first nine months of the year, however, it was down 25%, to 877 million euros.

In a context of high fuel costs, the group also announced in a press release a set of new savings measures for its KLM branch (KLM and Transavia Netherlands), less profitable than Air France (Air France and Transavia France). These measures include a revision of collective agreements with a view to “strict control of the evolution of the payroll”, the reorganization, sometimes by outsourcing, sometimes on the contrary by reintegration, of “certain activities linked to ground operations, cargo and maintenance”, and finally the cessation of the operation of “the oldest” planes, those which consume the most kerosene. The CEO of Air France-KLM, Benjamin Smith, welcomed “a resilient third quarter”.

“Demand in our key strategic markets, combined with strong commercial discipline, led to an increase in unit revenues, while continued cost control – combined with a well-managed fuel bill – helped keep unit costs generally stable,” he detailed. Turnover increased during this quarter by 8% to 9.916 billion euros. At a constant exchange rate, the increase is even greater, at 12%.

“Strong unit revenues fully offset the impact of rising fuel prices, amid the crisis in the Middle East. Furthermore, rigorous cost control has limited the increase in unit costs to only +0.1%,” the group welcomed. Air France-KLM indicated that it had blocked through hedging contracts the price of 54% of the fuel it should consume in 2027, compared to 68% in 2026.

And it revised upwards its estimate of its fuel bill for 2026, to $9.2 billion ($300 million more than its last forecast).

Machine-translated from French