Air France-klm Sa · EURONEXT:AF
Air France-klm Sa — Q2 2025 Earnings Presentation
33 slides from Air France-klm Sa's earnings presentation, 2025
Slide 1: Q2 2025 Results
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Slide 2: Q2 2025 Highlights
Q2 2025 HIGHLIGHTS Benjamin Smith – Chief Executive Officer, Air France-KLM 2
Slide 3: Strong revenue growth and margin expansion in Q2 2025
Passengers carried Group revenues STRONG REVENUE GROWTH AND +6% +6% MARGIN EXPANSION IN Q2 2025 27.3m €8.4bn 25.7m €7.9bn • Revenues up 6%, with Group unit revenue up +2.4%¹ versus last year, driven by all businesses • Continued operating result improvement, up €223m compared to Q2 2024, to €736m, s
Slide 4: Improving revenue mix with premiumization strategy
YET ANOTHER YEAR OF IMPROVING REVENUE MIX WITH PREMIUMIZATION STRATEGY Air France-KLM Passenger Network Revenue1,2 H1 2025 vs. H1 2024 Revenue growth: +11% in La Première and Business La Première and 28.7% Business 27.3% • Good dynamics across all regions, great exposure of La Première cabin Premium
Slide 5: We continue pushing the boundaries of aspirational travelling
WE CONTINUE PUSHING THE BOUNDARIES OF ASPIRATIONAL TRAVELLING 5
Slide 6: Flying Blue celebrates 20 years
FLYING BLUE CELEBRATES 20 YEARS TOGETHER WITH 30 MILLION MEMBERS, NOW ACROSS ALL THE AIRLINES OF THE GROUP ~30 million members 40 20 YEARS Airlines partners >100 commercial partners of Flying Blue New Application Flying Blue+ The World’s Best Airline Rewards Program in 20241 Best Elite Program in Eu
Slide 7: Operational synergies across Air France-KLM Group
REINFORCEMENT OF OPERATIONAL SYNERGIES ACROSS AIR FRANCE-KLM GROUP TO OPTIMIZE ASSET UTILIZATION AMS-JFK flights on KLM Boeing 777 to be operated by combined teams of Air France pilots and KLM Cabin Crew in H2 2025 HOP! to operate 3 Embraer E190s over three seasons starting from W25 for KLM Cityhopp
Slide 8: Air France-KLM Group to take a majority stake in SAS in H2 2026
AIR FRANCE-KLM GROUP 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 8
Slide 9: Strategic moves to expand global footprint
STRATEGIC MOVES TO EXPAND GLOBAL FOOTPRINT AND UNLOCK ADDITIONAL GROWTH Air France-KLM & AerCap Air France-KLM, Delta Air Lines, Virgin Atlantic, IndiGo Exclusive negotiation to create a LEAP engine JV to support MRO activities Building a global network linking North America, Europe, the UK, and Ind
Slide 10: Q2 2025 Financial Results
Q2 2025 FINANCIAL RESULTS Steven Zaat – Chief Financial Officer, Air France-KLM 10
Slide 11: Second quarter operating result driven by unit revenue and fuel price
SECOND QUARTER OPERATING RESULT DRIVEN BY UNIT REVENUE AND SUPPORTED BY FUEL PRICE EVOLUTION Operating margin Operating result evolution (in €m) +223m 736 8.7% +2.3pt 513 176 -179 172 32 22 Revenues YoY Q2 2024 Unit revenue1 Unit cost2 Fuel price3 Currency Other Q2 2025 €8.4bn +6.2% YoY Net result O
Slide 12: Resilient group margin performance led by network and maintenance
RESILIENT GROUP MARGIN PERFORMANCE LED BY NETWORK AND MAINTENANCE Unit Revenue2 Revenues Operating result Operating Q2 2025 vs Q2 2024 Capacity 1 Change Change Change Constant Curr. (€ m) (€ m) margin +2.9% +2.8% 6,362 +4.6% Network 666 +221m 9.6% +2.9 pt +1.4% +2.6% 565 +3.6% Transavia +11.4% +2.9%
Slide 13: Solid operating result driven by Air France with cost headwinds at KLM
SOLID OPERATING RESULT DRIVEN BY AIR FRANCE WITH COST HEADWINDS AT KLM Q2 2025 vs Q2 2024 Capacity Revenues Change Operating Change Operating Change change (€ m) YoY result YoY margin YoY (€ m) +4.3% 5,181 +7.9% 490 +295 9.5% +5.4 pt +4.0% 3,399 +4.0% 197 -63 5.8% -2.2 pt 1 226 +8.7% 60 +6 26.5% +0.
Slide 14: Premiumization gains traction: yield and load factor resilient
PREMIUMIZATION GAINS TRACTION: YIELD AND LOAD FACTOR RESILIENT Q2 2025 vs Q2 2024 Total Long-Haul Short & Medium-Haul1 Transavia Total 88% 85% 90% 88% 11.4% 4.2% 2.5% 2.5% 4.2% 4.5% 0.7 pt 3.3% 0.0 pt -0.1 pt -0.1% -0.1 pt Premium1 North America Caribbean & Indian Ocean Asia & Middle East 77% 87% 88
Slide 15: Unit cost increased in Q2 in line with expectations
UNIT COST INCREASED IN Q2 IN LINE WITH EXPECTATIONS Unit cost per ASK evolution In % year-over-year 0.3% 1.1% 2.7% -2.8% -1.0% 0.9% 2.4% 1.4% -0.1% Labour price Productivity Operations ATC & Airport Unit revenue Q2 2025 unit cost1 Fuel price effect unit cost Q2 2025 Unit revenue charges related cost
Slide 16: KLM's Back on Track program mitigated cost increases in H1 2025
KLM’S BACK ON TRACK PROGRAM MITIGATED COST INCREASES IN H1 2025 ON TRACK TO DELIVER €450M IN 2025 H1 2025 value per pillar (In € m) Main initiatives H1 2025 Unchanged target of €450m despite headwinds Increase productivity & save cost Cost savings Additional initiatives launched to cover for value I
Slide 17: Strong operating free cash flow leading to net debt reduction
STRONG OPERATING FREE CASH FLOW LEADING TO NET DEBT REDUCTION H1 2025 Free cash flow evolution (In € m) H1 2025 Net debt evolution (In € m) Exceptionals: • €244m deferred social charges and wages taxes 1,297 7,332 7,135 375 -467 -1,285 1,180 1,730 244 1,285 -1,742 723 -806 Cash flow Net debt at Oper
Slide 18: Balance sheet simplification driving flexibility, rating stability
BALANCE SHEET SIMPLIFICATION DRIVING FLEXIBILITY RATING STABILITY 3 End June 2025, leverage1 ratio at 1.5x Cash at hand at €9.4bn and targeted liquidity level is between €6bn and €8bn AF/AF-KLM & KLM RCFs, in total €2.4bn undrawn, extended until 2029 provided by a wide spread of international banks,
Slide 19: Outlook
OUTLOOK Steven Zaat – Chief Financial Officer, Air France-KLM 19
Slide 20: Q3 forward bookings in line with Q2 trends
Q3 FORWARD BOOKINGS IN LINE WITH Q2 TRENDS Long-Haul Short & Medium-Haul Transavia Q3 77% 74% 66% 65% 72% 70% 2024 2025 2024 2025 2024 2025 Forward booking load factor 2024 Forward booking load factor 2025 Snapshot of the 24th of July 2024 and 2025 20
Slide 21: 2025 total fuel bill down year-on-year and 69% hedged
IN 2025, TOTAL FUEL BILL DOWN YEAR-ON-YEAR AND 69% HEDGED SAF premium 170 280 cost (€m) 7,310 ~6,900 Fuel bill after hedge excl SAF ($m) FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Market Brent ($ per bbl) 74 80 75 67 68 66 69 price 784 Jet fuel ($ per metric ton) 872 809 763 805 778 789 FY 2026
Slide 22: Group capacity outlook 2025 unchanged
GROUP CAPACITY OUTLOOK 2025 UNCHANGED RETAINING AGILE APPROACH TO CAPACITY MANAGEMENT FY 2025 Long Haul +3-5% Short and Medium Haul +3-5% Transavia 10% Total +4-5% vs. 2024 22
Slide 23: 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 24: Concluding Remarks
CONCLUDING REMARKS Benjamin Smith – Chief Executive Officer, Air France-KLM 24
Slide 25: Reaffirmed outlook for the 2026-2028 period
REAFFIRMED OUTLOOK FOR THE 2026-2028 PERIOD Adj. Operating free Operating margin Unit cost1 Leverage cash flow Significantly Reduction Investment grade Above 8% positive improve EBIT by ~€2bn by 2028 1) At constant fuel price including SAF, constant currency and excluding Emission Trading Scheme cos
Slide 26: To conclude
TO CONCLUDE STRONG Q2 PERFORMANCE Solid execution delivering revenue growth, continued operating result improvement. OUTLOOK 2025 PREMIUMIZATION ADVANCING RECONFIRMED Momentum driven by new cabin experiences, loyalty growth, and rising demand for premium travel. Maintaining a balanced approach to gr
Slide 27: Appendix
APPENDIX 27
Slide 28: H1 2025 results highlights
H1 2025 RESULTS HIGHLIGHTS Operating margin Operating result evolution +385m 409 2.6% +2.5pt 363 -22 -1 Revenues YoY 24 358 -313 H1 2024 Unit revenue1 Unit cost2 Fuel price3 Currency Other H1 2025 €15.6bn +6.9% YoY Net result Operating Key Performance Indicators Unit revenue1 Unit cost2 €401m +€715m
Slide 29: H1 2025 business overview
H1 2025 BUSINESS OVERVIEW H1 2025 vs H1 2024 1 Unit Revenue2 Revenues Operating result Operating Capacity Change Change Change Constant Curr. (€ m) (€ m) margin +2.7% +2.8% 11,778 +5.4% Network 474 +384m 3.7% +2.9 pt +0.8% +9.3% 1,188 +7.2% Transavia +12.3% +1.8% 1,472 +12.8% -193 -54m -13.1% -2.5 p
Slide 30: H1 2025 airlines and Flying Blue overview
H1 2025 AIRLINES AND FLYING BLUE OVERVIEW Capacity Revenues Change Operating Change Operating Change H1 2025 vs H1 2024 change (€ m) YoY result YoY margin YoY (€ m) +4.9% 9,527 +7.8% 308 +361 3.2% +3.8 pt +2.8% 6,345 +5.7% -2 +28 -0.0% +0.5 pt 1 425 +5.2% 106 +5 24.9% -0.0 pt +4.0% 15,608 +6.9% 409
Slide 31: Currency impact on operating result
CURRENCY IMPACT ON OPERATING RESULT Currency impact on revenues and costs In € m 32 89 Revenues and costs per currency FY 2024 -57 REVENUES COSTS US dollar (and related US dollar Q2 2025 currencies) 25 30 Currency impact on revenues 55 20 70 Currency impact on costs, including hedging Euro Other Oth
Slide 32: Debt redemption profile at 30 June 2025
DEBT REDEMPTION PROFILE AT 30 JUNE 2025 Debt reimbursement profile(1) In €m 500 2,300 650 400 500 600 700 550 700 400 2025 2 2026 2027 2028 2029 2030 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% (̴€300m, initi
Slide 33: Investor Relations department
Investor Relations department Michiel Klinkers Marouane Mami Michiel.klinkers@airfranceklm.com Marouane.mami@airfranceklm.com