Air France-KLM Group (AFRAF.PK) reported Thursday narrower loss in its first quarter, benefited by higher revenues, traffic and capacity supported by a favourable demand environment.
Looking ahead for fiscal 2026, the French airline now expects growth in capacity by 2 percent to 4 percent from last year, lower than previous estimate of growth by 3 percent to 5 percent, given the current geopolitical uncertainty.
Fuel bill is expected at $9.3 billion in fiscal 2026, which represents an increase of $2.4 billion from last year.
Benjamin Smith, Group CEO, said, "While fuel price increases are not yet reflected in the results we present today, they are expected to weigh on the coming quarters. We've already introduced measures to support our financial performance through disciplined cost management and continue to monitor the situation closely. While the environment remains uncertain, we remain committed to the execution of our strategy."
In the first quarter, net loss - Group part was 287 million euros, narrower than loss of 292 million euros a year ago. Loss per share was 1.15 euros, compared to loss of 1.16 euros per share last year.
Loss from current operations was 27 million euros, narrower than last year's loss of 328 million euros, in a context of geopolitical turmoil and operational disruptions.
The company noted that reduced industry capacity in March pushed operating result up despite weather related disruptions in January.
Revenues from ordinary activities grew 4.4 percent to 7.48 billion euros from last year's 7.17 billion euros, driven by Passenger Network. Revenues at constant exchange rates increased 8.3 percent.
Group Passengers increased 2.3 percent year-over-year to 22.30 million, Group Capacity grew 4 percent to 78.57 billion ASKs, and Group Traffic increased 4.4 percent to 67.80 billion RPKs. Group Passenger load factor grew 0.3 percentage points from last year to 86.3 percent.
Unit revenue at constant currency was up 3.4 percent thanks to Passenger network supported by ongoing premiumization and reduced industry capacity in March due to the Middle East conflict.
The company noted that fuel price increase since the start of the Middle East conflict is not visible in the quarter due to a delay in pricing.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.