Air France-KLM Profit Beats Forecasts as KLM Plans 1,000 Job Cuts
Quarterly operating profit rose to €1.35 billion as higher revenue offset fuel costs. KLM expects about 1,000 positions to disappear through productivity gains over the coming years.
Air France-KLM reported a stronger third-quarter operating profit Thursday as higher revenue offset rising fuel costs, while KLM outlined plans to eliminate about 1,000 positions through productivity improvements over the coming years.
The group reported adjusted operating profit of €1.346 billion, up €126 million from a year earlier, on revenue of €9.9 billion, an increase of 7.6%. AeroTime reported that the profit exceeded analyst forecasts.
Air France-KLM said passenger and cargo demand, a shift toward premium travel and cost control supported the result. Higher fuel prices added €436 million to quarterly costs after hedging, but revenue growth more than covered the increase.
KLM said its existing savings program was not enough to fix structural problems. The airline expects about 1,000 positions to disappear through productivity gains, and said it would seek to limit the impact through natural attrition, voluntary arrangements and transfers.
Those positions are part of a wider reorganization affecting about 5,000 roles, including outsourcing and transfers within Air France-KLM. They should not all be described as layoffs.
The group narrowed its 2026 capacity-growth outlook to about 2%, the bottom of its previous 2% to 3% range. It expects unit costs to rise about 1% and kept its forecast for net capital spending below €3 billion.