Q1 2026 press release

844

30 April, 2026

• Group revenues up 4.4% year-on-year to €7.5bn, driven by Passenger Network.

• Unit revenue at constant currency up 3.4% thanks to Passenger network supported by ongoing premiumization and reduced industry capacity in March due to the Middle East conflict, while group capacity grew this quarter by 4.0%.

• Fuel price increase since the start of the Middle East conflict is not visible in Q1 due to a delay in pricing.

• Unit cost¹ increase limited to +0.5% as a result of higher customer compensation in January related to the weather impact and premiumization, partly compensated by disciplined cost management, and productivity gains.

• Operating result at -€27m, improving by €301m compared to last year.

• Strong cash flow performance: recurring adjusted operating free cash flow positive at €0.9bn, up €0.1bn year-on-year.

• Leverage (Net debt/Current EBITDA ratio) at 1.5x.

• Solid cash at hand of €10.6bn at end March 2026.

• Fleet renewal accelerating, up 8 points year-on-year, with 36% share of new generation aircraft.

FY 2026 outlook revised given current geopolitical uncertainty

For 2026, the Group retains an agile approach and expects:

• Capacity up by +2% to +4% compared to 2025. (previously +3% to +5%).

• Unit cost¹ up between 0% and +2%, including +0.5% from premiumization (unchanged).

• Net capital expenditures below €3bn. (previously circa €3bn).

• Leverage ratio between 1.5x - 2.0x (unchanged).

• Fuel bill is expected at USD 9.3bn² in FY 2026 which represents an increase of USD2.4bn² compared to FY 2025, of which USD 1.1bn² in Q2 2026.
  
  

Commenting on the results, Mr. Benjamin Smith, Group CEO, said:

“In the first quarter of 2026, Air France-KLM delivered solid results, with strong unit revenue growth supported by a favourable demand environment. In a highly volatile geopolitical context, we demonstrated the resilience and agility of our network and successfully reallocated capacity to best meet demand. We also demonstrated once again the strategic role of aviation, by participating in repatriation efforts at the beginning of the war in the Middle East. I would like to thank our employees – especially those who took part in these operations – for their dedication.

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.”

Reduced industry capacity in March pushed operating result up despite weather related disruptions in January

1) At constant fuel, constant currency and excluding ETS.

*IFRS Operating free cash flow adjusted to exclude the repayment of deferred social charges, pensions contributions and wage taxes granted during the Covid period, payment of lease debt and interests paid and received as well as the payment of the Cargo fine

Operating result improved by €301m thanks to increased ticket prices and a lag in fuel settlement

In the first quarter of 2026, Air France-KLM welcomed 22.3 million passengers, up 2.3% year-on-year. As capacity increased by 4.0% and traffic by 4.4%, the load factor increased from 86.0% to 86.3%.

The Group unit revenue per ASK was up 3.4% year-on-year at constant currency, due to premiumization and reduced industry capacity in March as a result of the Middle East conflict. Passenger network unit revenue increased by 5.1%, driven by positive unit revenue development in February and especially in March, fully compensating the January snow impact. In particular North Atlantic, Central & South America and Asia performed very well.

Cargo unit revenues reduced slightly (-0.7% at constant currency), on a high comparison base last year. Transavia unit revenues declined by -3.9% due to increased capacity.

Q1 unit cost³ was up 0.5% year-on-year due to increased customer compensation in January as a result of the weather impact (0.5%). Productivity benefits (-0.9%) were fully offset by labour cost increase (+0.4%), premiumization (+0.1%) and ATC & Airport fee charges (+0.3%).

The operating result amounted to -€27 million, with a margin of -0.4%. This development was supported by an increase in unit revenue of €214 million, a fuel price decrease of €86 million and a €30 million increase in unit cost.

Cash

The Group reported a positive operating free cash flow of €732 million, mainly driven by a positive working capital movement of almost €1.2 billion thanks to the summer ticket sales. The working capital movement was impacted by the payment of deferrals inherited from the pandemic amounting to €125 million. The €368 million cargo claim payment in March reduced the cash flow before change in working capital. Net capex totaled €890 million and remained stable compared to the first quarter of 2025. Recurring adjusted operating free cash flow⁴ reached €884 million, an increase of €101 million year-on-year, driven by the improvement in current EBITDA.

Net debt reduced to €8.0 billion, down €366 million. The decrease is mainly explained by the positive operating free cash flow.

The leverage ratio stood at 1.5x, in line with the Group’s ambition of 1.5x to 2.0x, below the level of 31 March 2025.

At end March 2026, cash at hand stood at €10.6 billion, above the targeted range of €6–8 billion.

In early January 2026, Air France-KLM placed €650 million senior unsecured notes under its EMTN (Euro Medium Term Notes) Program. The maturity of the notes is 5 years and the notes carry a fixed annual coupon of 3.875% (the yield was fixed at 4.033%). The high level of oversubscription and quality of demand allowed the Group to achieve the lowest credit spread in its history and to increase the size from €500 million to €650 million. The proceeds of the issue will be used for general corporate purposes and to redeem the first tranche of the Sustainability Linked Bonds (€500m, coupon 7.25%) in May 2026.

In February, the Court of Justice of the European Union rejected the appeal filed against the decision of the General Court of Justice of the European Union confirming the decision of the European Commission of 17 March 2017 against 13 cargo operators, including Group airlines Air France, KLM and Martinair for past practices considered to be anti-competitive in the air cargo sector.

Provisions for €366m had been made in respect of these fines - which amount to a total of €368m including interest. The full amount has been paid in March 2026.

Sustainability

The Group supports the adoption of ambitious environmental targets, advocating for an industry-wide transformation that ensures a global level playing field.

By implementing its Transition Plan, Air France-KLM aims to manage and reduce its GHG emissions effectively, ensuring that the Group stays on track to achieve its GHG emission reduction target and mitigate climate-related risks.

The Group’s mid-term target for 2030 - validated by the SBTi and aligned with a 1.5°C scenario - enables monitoring the progress toward achieving the Air France-KLM Transition Plan.

Fleet renewal

Fleet renewal is a cornerstone of the Group’s Transition Plan. Air France-KLM continues to take delivery of new generation aircraft such as Airbus A350s, B787-10, A320neo family aircraft, A220s and Embraer 195-E2s. These new generation aircraft consume up to 25% less fuel per passenger km and reduce the noise footprint by up to 63% compared to the previous generation aircraft they replace.

At the end of March 2026, 36% of the Group’s fleet consisted of new-generation aircraft, up 8 points compared to end of March 2025. The Group plans to have up to 80% of its fleet composed of new-generation aircraft by 2030.

SAF

The Air France-KLM Group is strengthening its SAF program through a new collaboration with Chooose, a digital platform that will help better manage, track and scale the use of SAF across the Group.

Along fleet renewal, SAF remains one of the most effective solutions available today to reduce aviation’s carbon footprint, achieving at least a 65% reduction in CO₂ emissions over its lifecycle compared to conventional fuel. The SAF used by Air France-KLM meets strict sustainability criteria: no competition with the food chain, no contribution to deforestation and no use of palm oil.

ESG Ratings

MSCI ESG Rating: AA

The US rating agency MSCI⁶ has reanalyzed the Air France-KLM Group's sustainability management and given it an “AA” rating (issued in March 2026). MSCI ESG Research provides MSCI ESG Ratings on global public and a few private companies on a scale of AAA (leader) to CCC (laggard), according to exposure to industry-specific ESG risks and the ability to manage those risks relative to peers.

Post quarter event

TAP Air Portugal

On April 23, 2026, following the non‑binding offer submitted on April 2, the Portuguese government announced that Air France‑KLM has been selected to submit a binding offer in the process regarding the acquisition of a minority stake in TAP Air Portugal. The process advanced to the next stage with Air France‑KLM being one of the two remaining bidders.

Thanks to its ideal geographical position, Lisbon could become the Group’s unique Southern European hub, offering extensive connectivity notably to the Americas - including Brazil, a key market for both TAP and Air France-KLM, as well as Africa.

TAP would benefit from its integration into a worldwide commercial organization, covering Air France, KLM and Transavia, as well as close engagement with the Group’s partners within the transatlantic Joint Venture.

Any potential transaction would be assessed in line with the Group’s strategic priorities.

Update on fuel price

The Group has a rolling fuel hedging policy in place, using Brent ICE, Gasoil ICE and Jet CIF NWE components. Geopolitical tensions in the Middle East resulted in higher fuel prices, with jet fuel prices rising significantly more sharply than those of gasoil and brent.

Given the current hedges and forward curves, the hedging result amounts to USD 1.5 billion². Despite hedging, a total fuel bill of USD 9.3bn² is estimated for 2026, representing an increase of USD 2.4bn², compared to FY 2025. The sharp increase in fuel prices was not visible in the first quarter due to a standard delay in pricing, but an impact of approximately USD 1.1bn⁷ is foreseen in Q2.

In response to the Middle East conflict and the reduction of industry capacity, the Group swiftly reallocated capacity by upgauging its fleet to Asia and East Africa and added additional flights. Air France-KLM introduced measures to mitigate the fuel price impact by including a higher carrier-imposed surcharge per ticket, following similar strategies by competitors. On the cost side, measures were also taken, discretionary costs are being minimized and the hiring of non-operational staff has been put on hold.

Updated FY 2026 capacity outlook in available seat kilometers compared to 2025

The Group expects:

Air France-KLM Network:

• Long haul: circa +2% to +4% (previously circa 4%)

• Short & Medium haul: stable (unchanged)

Transavia:

• +8-10% (previously circa 10%)
  
  

Air France-KLM Group:

• Total: +2% to +4% (previously +3% to +5%)
  
  

FY 2026 outlook revised given current geopolitical uncertainty

The Group retains an agile approach and expects:

• Capacity up by +2% to +4% compared to 2025 (previously +3% to +5%).

• Unit cost⁸ up between 0% and +2%, including +0.5% from cabin premiumization (unchanged).

• Net capital expenditures below €3bn (previously circa €3bn).

• Leverage ratio between 1.5x - 2.0x (unchanged)

Business review

Network result

Compared to the first quarter of 2025, total revenues increased by 4.3% to €6.3 billion. The operating result reached €148 million, up €291 million year-on-year at constant currency.
The quarter began with severe weather issues in Amsterdam, and to a lesser extent in Paris.
In March, the Middle East carriers reduced long haul capacity significantly due to geopolitical issues. This resulted in additional demand due to Golf hub avoidance, mainly on non-stop Asia, India and East Africa routes. In addition, rising fuel prices forced the Group to increase ticket prices worldwide.
In the first two months of the year, Cargo showed a negative unit revenue compared to the same period last year which was characterized by strong Cargo demand due to front-loading of shipments and tariff-driven shifts. March showed a positive unit revenue development due to reduced industry demand and increased pricing due to a rising fuel price.
The operating margin amounted to 2.3%, an increase of 5.5 points compared to the first quarter of 2025.

Strong unit revenue driven by yield increase

During the first quarter of 2026, capacity in Available Seat Kilometers (ASK) was 2.7% higher than last year. Traffic growth (3.2%) has led to a slightly higher load factor of 86.3%. Yield at constant currency showed an increase of 4.6%, leading to a unit revenue increase of 5.1% year-on-year at constant currency. The yield increase was mainly driven by mid-single-digit increases in front cabins (La Premiere, Business and Premium). Yield in the economy class was up 2%.

During the first quarter we observed the following trends in:

North Atlantic
Unit revenue was up, driven by a strong 5.7% yield increase. The performance was particularly strong in front cabins while economy cabin showed broadly stable unit revenue.

Latin America
Unit revenue grew on the back of strong yields (+6.7%), and load factor improvement by 1.7pt to 92% while capacity increased by 5.1%. The balance between industry supply and demand remained favorable across the quarter.

Asia & Middle East
Since the start of the conflict all Middle East flights have been canceled. Due to Gulf hub avoidance, demand on the Asia routes was very strong in March. In addition, Air France and KLM were able to operate multiple upgauges and to add extra service to cater for last minute demand. The area was positive with an increase in load factor of 1.7 points and yield up 8.1%, despite cancellation of service in the Middle East and Gulf area.

Caribbean & Indian Ocean
Capacity (+1.8%) and yields (+3.0%) were up compared to last year while load factor was broadly stable at 88%.

Africa
Unit revenue increased due to higher yield (+2.0%) while load factor was broadly stable at 83%. The Group also redeployed some capacity on Eastern African due to industry demand avoiding Gulf hubs.

Short and Medium-haul
Overall, capacity decreased -2.3%, with a load factor stable at 82% and with a +4.0% increase in yields. Yields in March were largely supported by Long Haul connecting demand to the East as passengers avoided Gulf Hubs.

Cargo: Unit revenues against a constant currency slightly down compared to a strong first quarter last year

In 2026’s first quarter, the Group’s Cargo business carried 234 million kilograms, representing a 4.0% increase year-on-year. The Group’s Cargo capacity grew 2.9%, despite limitations in full freighter capacity due to scheduled and unscheduled maintenance and traffic increased by 3.8% year-on-year. This contributed to a small increase in the load factor by 0.4pt to 49.4%. Unit revenue per ATK at constant currency was below last year’s level in January and February, which showed strong Cargo demand due to front-loading of shipments and tariff-driven shifts. In March, the Middle East conflict reduced industry capacity and pushed the Group’s yield and unit revenue above last year’s levels.

Air France-KLM Martinair Cargo continued its commercial transformation in 2026, with 92% of bookings made online via the myCargo platform in March

Transavia: At Orly all slots transferred from Air France

In the first quarter, Transavia’s capacity in Available Seat Kilometers grew 13.3%, while traffic increased by 12.7%, resulting in a decrease in load factor of 0.4 points. Yield went down by 3.4% resulting in a unit revenue reduction of 3.9%.

Transavia’s capacity growth is accompanied by focused actions on unit cost reduction and network profitability, in a highly competitive environment. Transavia France results are temporarily impacted by taking over Air France operations at Orly which was finalized by the end of the first quarter.

Transavia cancelled flights to and from Israel, Lebanon and Saudi Arabia and observed negative booking trends to surrounding countries like Egypt, Cyprus and Turkey.

Maintenance business: Continuous growth in third party revenues

In the first quarter, the third-party revenues went up 3.1% while total revenues declined slightly by 1.5%. The operating result reduced slightly and the operating margin stood at 4.1%. The reduction in operating result was driven by a strengthening of the US Dollar compared to the euro, partly compensated by improved components results. The supply chain remains highly disrupted, in particular concerning certain engines types.

Air France: refocusing of operations at the Paris-Charles de Gaulle hub

Air France Group

The operating result reached €11 million in the first quarter, up €193 million year-on-year. The operating margin increased by 4.4 points compared to Q1 last year, driven by a positive passenger network unit revenue and reducing unit cost including fuel.

As announced in autumn 2023, from summer 2026 onwards, Air France centralizes all its Paris operations at its Paris-Charles de Gaulle hub, with the exception of flights to and from Corsica under the current Public Service Obligation.

This refocusing of operations at Paris-Charles de Gaulle will facilitate international connections and notably strengthen connectivity between the French regions and overseas territories.

KLM: Operating result improvement driven by unit revenue and unit cost despite severe weather impact in January

KLM Group

In the first quarter, KLM reported an operating result of €-114 million, an improvement of €+84 million year-on-year, driven by positive unit revenues and a reduction in unit cost thanks to the further progress on the Back on Track program. The main part of the snow episode in January impacting the operating result of Air France-KLM by €90 million was for the account of KLM and Transavia Netherlands. In February, and in particular in March, KLM was able to recover the difficult start of the year thanks to increased yields on the passenger network.

Flying Blue: Continuous revenue and operating margin growth

Flying Blue Miles

In the first quarter, Flying Blue Miles generated €258 million in total revenues, including revenues from third-party airline and non-airline partners. The operating margin increased significantly to 30.2% despite a weaker USD and thanks to the new AMEX contract.

Nb: Sum of individual airline and Flying Blue results does not add up to AF-KLM total due to intercompany eliminations at Group level.

Other

IFRS 18

IFRS 18 is effective as of January 1, 2027 with early adoption permitted from January 1, 2026. IFRS 18 has been endorsed by the European Union on February 13, 2026.

The Group is well advanced in its assessment of the impact of this new standard, particularly with regard to the structure of the income statement and the statement of cash flows.

As regards the performance measures used and disclosed by the Group, “adjusted EBITDA” and “adjusted operating income” will replace “recurring EBITDA” and “recurring operating income”, respectively. They will remain comparable in terms of content, as the planned reclassifications will not have any significant impact on these aggregates.

The Group is considering early adoption as of the June 30, 2026.

******

The results presentation is available at www.airfranceklm.com on April 30, 2026 from 8:00 am CET.

A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on April 30, 2026 at 09.30 am CET.

To connect to the webcast, please use the link below:

https://af-klm.engagestream.euronext.com/2026-first-quarter-results

Income statement

Note: the sum of “Salaries and related costs” in the business review section is not equal to the above mentioned figure due to corporate overhead, IT and other businesses not directly related to Network, Maintenance or Transavia

Consolidated balance sheet

Statement of Consolidated Cash Flows from January 1 until March 31, 2026

Recurring adjusted operating free cash flow

(1) IFRS Operating free cash flow corrected from the repayment of deferred social charges, pensions contributions and wage taxes granted during the Covid period, payment of lease debt and interests paid and received as well as the payment of the Cargo fine

Net debt

Return on capital employed (ROCE)

^{(1) Excluding the report of social & fiscal charges granted consequently to Covid.}

^{The “Normative income tax” no longer takes into account the exceptional contribution on the profits of large companies for the French tax group. Prior periods have therefore been restated accordingly to ensure comparability of the figures.}

Unit cost: net cost per ASK

Group fleet at 31 March 2026

2026 TRAFFIC

Passenger network activity

Transavia activity

Total Group passenger activity

Cargo activity

Air France activity

KLM activity

1 Against a constant fuel price, constant currency and excluding Emission Trading Scheme cost (ETS)

2 Based on the current hedges and forward curve of 24 April and subject to change given geopolitical uncertainty.

3 At constant fuel, constant currency and excluding ETS
4 Check for the definition, the recurring adjusted free cash flow table in the appendix of this press release
5New generation fleet / Fleet in operation
6 MSCI Terms and Conditions: Terms and Conditions

7 Based on the current hedges and forward curve of 24 April and subject to change given geopolitical uncertainty

8 Against a constant fuel price, constant currency and excluding Emission Trading Scheme cost (ETS)

9 Against a constant fuel price, constant currency and excluding Emission Trading Scheme cost (ETS)

10 Excluding Transavia

Attachment

• Q1 2026 - AFKLM - Press release