Air France-klm Sa · EURONEXT:AF
Air France-klm Sa — Debt Investor Presentation (January 2026)
36 slides from Air France-klm Sa's debt investor presentation, January 2026
Slide 1: Credit update
Credit update January 2026 AIRFRANCEKLM GROUP
Slide 2: Disclaimer
DISCLAIMER This presentation is for information purposes only and does not constitute an offer to buy, sell, issue or subscribe for, or a solicitation to purchase any securities in any jurisdiction. This presentation is not, and under no circumstances is to be construed as, a prospectus or other off
Slide 3: Outline
OUTLINE Executive Summary Introduction to Air France-KLM Section 1 Business Highlights Section 2 Q3 2025 Trading update Section 3 Key Credit Highlights Section 4 Conclusion Appendices 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY AIR FRANCE-KLM, AN INTERNATIONAL CARRIER OPERATING A WORLDWIDE DIVERSIFIED NETWORK ✓ Offering extensive worldwide connectivity to 320 destinations together with 59 airline partners ✓ Expanding global footprint by a majority stake in the Scandinavia based airline SAS to be taken in
Slide 5: Section 1: Introduction to Air France-KLM
SECTION 1: INTRODUCTION TO AIR FRANCE-KLM 5
Slide 6: Air France-KLM is a European Champion
AIR FRANCE-KLM IS A EUROPEAN CHAMPION Key Financial Metrics Solid Liquidity and Leverage Position 1.5x – 2.0x €31.5bn €1.6bn €0.3bn €9.4bn 1.7x Ambition 98m 911k 320 FY2024 FY2024 FY2024 Cash at hand at FY2024 Leverage Ratio Passengers Tons of Cargo Destinations Revenues Operating Result Recurring A
Slide 7: The air transport industry has proven its resilience
THE AIR TRANSPORT INDUSTRY HAS PROVEN ITS RESILIENCE Passenger traffic growth remains structurally above Steadiness despite evolving market conditions GDP over the long term Global air passengers (RPKs) The air transport industry has demonstrated its 25 ability to withstand crises, with long term gr
Slide 8: Section 2: Business Highlights
SECTION 2: BUSINESS HIGHLIGHTS 8
Slide 9: Key differentiators and strategic highlights of Air France-KLM
KEY DIFFERENTIATORS AND STRATEGIC HIGHLIGHTS OF AIR FRANCE-KLM Extensive and diversified network footprint supported by strong airline 320 59 12 partnerships DESTINATIONS CODE SHARE PARTNERS Fleet simplification strategy delivering strong environmental and 5-6 Up to 80% 23 financial benefits AIRCRAF
Slide 10: One of the world's most extensive and diversified networks
TOGETHER, AIR FRANCE, KLM AND TRANSAVIA OFFER TRAVELLERS ONE OF THE WORLD'S MOST EXTENSIVE AND DIVERSIFIED NETWORKS from CDG from ORY 190 Air France destinations from CDG 167 KLM destinations from AMS from AMS from AMS 150 Transavia destinations from ORY and AMS 10
Slide 11: Air France-KLM pursues its fleet simplification efforts
AIR FRANCE-KLM PURSUES ITS FLEET SIMPLIFICATION EFFORTS Target fleet composition in 2030 Target fleet composition in 2030 Target fleet composition in 2030 777-300ER LONG-HAUL 777 LONG-HAUL A320/321neo MEDIUM- HAUL A350-900 LONG-HAUL A350-F 787 LONG-HAUL A350-F A320/A321neo A220-300 MEDIUM-HAUL E170/
Slide 12: Fleet strategy delivers environmental and financial benefits
AIR FRANCE-KLM FLEET STRATEGY DELIVERS STRONG ENVIRONMENTAL AND FINANCIAL BENEFITS 60 100 99 A220 family firm orders for: A320neo family firm orders for: A350 family2 firm orders for: -10% -20% -10% -15% -15% -25% Unit costs1 CO2 emissions1 Unit costs1 CO2 emissions1 Unit costs1 CO2 emissions1 % of
Slide 13: Scaled and growing customer loyalty program
SCALED AND GROWING CUSTOMER LOYALTY PROGRAM UNDERPINNING CUSTOMER STICKINESS AND REVENUE GENERATION The loyalty program of the Group’s airlines… €811m FY2024 Revenue 24.7% FY2024 Operating margin …featuring more than 40 airline partners… Best airline loyalty 30m program including members worldwide1
Slide 14: Well-positioned to benefit from structural airline industry tailwinds
WELL-POSITIONED TO BENEFIT FROM STRUCTURAL AIRLINE INDUSTRY TAILWINDS Themes Description and implications Proof points Impact 2024 vs. 2023 Global Shift • Rising customer demand for enhanced comfort and service Towards quality +12% “Premiumization” • Implication: Solid momentum in premium & direct s
Slide 15: Section 3: Q3 2025 Trading Update
SECTION 3: Q3 2025 TRADING UPDATE 15
Slide 16: Q3: Stable operating margin
Passengers carried Group revenues Q3: STABLE OPERATING MARGIN +5% +3% 27.9m 29.2m €9.0bn €9.2bn • Revenues up 3%, versus last year, with passenger network unit revenue +0.5%¹, strong premium cabins performance and solid contribution from maintenance. • Unit cost increase moderating to +1.3%, coming
Slide 17: Unit revenue development again strong in premium cabins
UNIT REVENUE DEVELOPMENT AGAIN STRONG IN PREMIUM CABINS Q3 2025 vs Q3 2024 Total Long-Haul Short & Medium-Haul1 Transavia Total 89% 86% 88% 89% 12.9% 7.7% 5.1% 3.8% 2.9% 1.5% 0.7 pt 0.4% -0.4pt pt -0.7 pt -0.7% -0.9% -0.5 First & Business1 77% North America Caribbean & Indian Ocean Asia & Middle Eas
Slide 18: Unit cost up 1.3%, at the lower end of full year guidance
UNIT COST UP 1.3%, AT THE LOWER END OF THE FULL YEAR GUIDANCE Q3 Unit cost per ASK evolution In % year-over-year +0.1% 0.6% 1.3% -1.5% 0.6% 0.6% -1.3% -0.2% 0.8% Labour price Productivity Operations ATC charges Premiumization Unit cost1 Fuel price Unit cost including & Airport effect and ETS fuel pr
Slide 19: Outlook 2025 reconfirmed
OUTLOOK 2025 RECONFIRMED FY 2025 Group Capacity +4-5% vs. 2024 Unit cost1 Low single digit increase Net Capex (c.80% fleet/fleet related) €3.2 - €3.4bn Net Debt/Current EBITDA Between 1.5x and 2.0x 1) At constant fuel price including SAF, constant currency and excluding Emission Trading Scheme cost
Slide 20: Air France-KLM to take a majority stake in SAS in H2 2026
AIR FRANCE-KLM TO TAKE A MAJORITY STAKE IN SAS IN H2 2026 €4.1Bn Revenues 130 Destinations 25M Passengers 19.9% 60.5% 10.5K Employees Intention to acquire the stakes held 138 Aircraft by Castlelake and Lind Invest1 >8M Loyalty members 1. Subject to EU approval 20
Slide 21: Section 4: Key Credit Highlights
SECTION 4: KEY CREDIT HIGHLIGHTS 21
Slide 22: Air France-KLM key credit highlights in motion
AIR FRANCE-KLM KEY CREDIT HIGHLIGHTS IN MOTION Navigated well through the pandemic and emerged with improved figures 1 with sustained Operating margin growth through operational discipline and transformation initiatives 2 Improving free cashflow generation supporting strong liquidity position Levera
Slide 23: Navigated well through the pandemic and emerged with improved figures
1 NAVIGATED WELL THROUGH THE PANDEMIC AND EMERGED WITH IMPROVED FIGURES Capacity (m ASKs) Revenue (€bn) COVID-19 COVID-19 332 310 321 31.5 282 27.2 30.0 26.4 196 138 14.3 11.1 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Operating Profit (€bn) Net Debt / EBITDA (x) 1.8 1.7 COVID-19 1.
Slide 24: Improving free cashflow generation supporting strong liquidity position
2 IMPROVING FREE CASHFLOW GENERATION SUPPORTING STRONG LIQUIDITY POSITION Improvement in operating free cash flow Solid Liquidity level Recurring adj. operating. FCF1 Liquidity Levels €9.4bn €656m 2.4 271 €6.5bn RCF Balance sheet 1.8 liquidity 6.9 4.7 (385) FY2019 FY2024 Dec 31, 2019 FY2019 Dec 31,
Slide 25: Strong operating free cash flow
3 STRONG OPERATING FREE CASH FLOW 9-months 2025 Free cash flow evolution (In € m) 9-months 2025 Net debt evolution (In € m) 402 3,639 553 7,787 1,688 7,332 -312 369 -1,474 1,474 -2,567 715 -1,128 Cash flow Payment of Recurring Net debt at New and Interest Net debt Change Operating before change Net
Slide 26: Balance sheet management driving financial cost down
BALANCE SHEET MANAGEMENT DRIVING FINANCIAL COST DOWN 3 Leverage ratio1 at 1.6x at end-September 2025 Cash at hand at €9.5bn well above targeted liquidity level between €6bn and €8bn Successful €0.5bn 5-year senior bond issuance in August with 3.75% fixed annual coupon Ongoing simplification of AF-KL
Slide 27: Credit ratings illustrating ongoing transformation and improved financial structure
4 CREDIT RATINGS ILLUSTRATING OUR ONGOING TRANSFORMATION AND AN IMPROVED FINANCIAL STRUCTURE • Long-Term Issuer Rating of ‘BBB-’/Stable • Senior Unsecured Long-Term Debt rating of ‘BBB-’ • Issuer Credit Rating of ‘BB+’/Stable • Senior Unsecured Notes rating of ‘BB+’ 27
Slide 28: Debt redemption profile at 30 September 2025
DEBT REDEMPTION PROFILE AT 30 SEPTEMBER 2025 Debt reimbursement profile(1) In €m 500 650 400 2,000 500 500 800 700 800 650 100 600 2025 2026 2027 2028 2029 2030 2031 and beyond Bonds issued by Air France-KLM June 2026: May 2029: Other long-term Debt: AF and KLM Sustainability-Linked Bonds AFKL 3.875
Slide 29: Air France-KLM's outlook for the 2026-2028 period
5 AIR FRANCE-KLM’S OUTLOOK FOR THE 2026-2028 PERIOD Adj. Operating free Operating margin Unit cost1 Leverage cash flow Significantly Reduction Investment Grade Above 8% positive 1) At constant fuel price including SAF, constant currency and excluding Emission Trading Scheme cost (ETS) 29
Slide 30: Conclusion
CONCLUSION AIRFRANCEKLM
Slide 31: To conclude
TO CONCLUDE WELL POSITIONED TO BENEFIT FROM AIR TRAFFIC GROWTH ✓ Strong recognized brands and Loyalty program ✓ Diversified passenger network and modern fleet ✓ Mature Cargo and Maintenance businesses ✓ Expanded global footprint (ongoing proceedings to take majority stake in SAS) STRONG STRATEGIC EX
Slide 32: Appendices
APPENDICES AIRFRANCEKLM
Slide 33: Rolling fuel hedging policy
ROLLING FUEL HEDGING POLICY1 70% 70% 55% 40% 25% 10% Current quarter Quarter +1 Quarter +2 Quarter +3 Quarter +4 Quarter +5 1) At the beginning of the quarter 33
Slide 34: Hedging strategy reduces 2025 fuel bill amid capacity growth
HEDGING STRATEGY REDUCES 2025 FUEL BILL AMID CAPACITY GROWTH 70% HEDGED IN 2025 AND 50% IN 2026 SAF premium 170 260 cost (€m) FY 2026 7,310 ~6,900 50% hedged Fuel bill after hedge excl SAF ($m) FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Brent ($ per bbl) 80 75 67
Slide 35: Shareholding structure as of 30 June 2025
SHAREHOLDING STRUCTURE AS OF 30 JUNE 2025 French State 28.0% 42.8% Other (registered and bearer shares) 9.1% Dutch State 0.9% 8.8% 2.8% SPAAK 3.0% 4.6% CMA CGM Delta Airlines China Eastern Airlines Employees (FCPE) 35
Slide 36: Investor Relations department
Investor Relations department Michiel Klinkers Marouane Mami Michiel.klinkers@airfranceklm.com Marouane.mami@airfranceklm.com
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