Air France-KLM Shares Rise 14% After Premium Travel Report
The Company Bets on North Atlantic Route Profitability
Air France-KLM shares climbed 14% following the release of its fourth-quarter results. The company reported operating profit above analysts’ expectations and pointed to steady demand for premium long-haul travel. Particular emphasis was placed on routes between the US and Europe, which remain key for the group, Bloomberg reports. Management reaffirmed its medium-term margin target despite geopolitical tensions and weather-related disruptions earlier this year.
Financial Results
Air France-KLM shares rose as much as 14% during trading — the strongest intraday increase since April 10. The carrier surpassed the €2 billion mark in annual operating profit for the first time, increasing the figure by €400 million. The operating margin stood at 6.1%. Over the past 12 months, the company’s shares have gained more than 50%.
In the fourth quarter, operating profit reached €393 million compared with a forecast of €306 million. The figure was close to the level recorded in the same period of 2024 and exceeded analysts’ expectations. Quarterly revenue totaled €8.19 billion, also beating market estimates.
Citi analyst Conor Dwyer noted in a research note that yields on the North Atlantic and in premium cabins showed encouraging momentum in the reporting quarter.
North Atlantic and Premium Segment
In 2025, Air France-KLM carried more than 102.8 million passengers, with traffic rising 4.3% while capacity increased by nearly 5%, indicating continued demand recovery.
Demand for business- and first-class travel between the US and Europe remains resilient in both corporate and leisure segments. Premium travel continues to show stronger stability, while economy-class yields face pressure in Europe.
“The transatlantic is a strong point for us, in particular the premium market and in particular point of sale United States,” Chief Executive Officer Ben Smith said in an interview on Bloomberg Television.
The load factor on North American routes declined by 0.5 percentage points to 88% in the fourth quarter. The drop was smaller than across the broader long-haul network. Performance in other regions was less stable. Flights to Madagascar were affected by protests in September and October.
Operational Disruptions and Bookings
Forward bookings for the current quarter are in line with previous periods. Snow and ice disruptions in early January, which primarily affected Amsterdam’s Schiphol Airport as well as flights in Paris, are expected to cost the group around €90 million this quarter. The company is conducting a joint investigation with Amsterdam authorities into operational shortcomings identified during the disruptions.
The situation was aggravated by a shortage of de-icing fluid at Schiphol. Air France-KLM, responsible for most aircraft de-icing operations at the airport, was using winter-level supplies on a daily basis. KLM crews urgently transported additional volumes from Germany. Severe weather led to more than 600 flight cancellations in Amsterdam and hundreds more in France. Over a thousand passengers were forced to spend the night in Schiphol’s terminals, where temporary camp beds were set up.
Aviation Outlook
The company expects capacity to grow by 3–5% this year. Unit costs may increase by up to 2%, including about 0.5% related to cabin upgrades. According to the International Air Transport Association (IATA), global passenger traffic is projected to grow by around 4.9% in 2026, with load factors likely to remain at historically high levels amid constrained capacity.
BCG forecasts that the global aviation market will expand by roughly 5–6% in 2026. However, cost growth — including fleet maintenance, labor and financing — may outpace revenue growth, putting pressure on airline margins.
Analysts at International Investment note that if premium demand remains resilient and capacity is managed prudently, European carriers focused on transatlantic routes could maintain yields above the market average. At the same time, cost pressures and external volatility are expected to remain key risk factors, limiting short-term margin expansion potential.