Air France-klm Sa · EURONEXT:AF

Air France-klm Sa — Q4 2025 Earnings Presentation

35 slides from Air France-klm Sa's earnings presentation, Feb 19, 2026

  1. Slide 1: Full Year 2025 Results

    e - e ¢ aad eo ~e a __ AIRFRANCEKLM GROUP

  2. Slide 2: FY 2025 Highlights

    FY 2025 HIGHLIGHTS Benjamin Smith – Chief Executive Officer Air France-KLM 2

  3. Slide 3: We are consistently executing our strategic plan across all the pillars

    WE ARE CONSISTENTLY EXECUTING OUR STRATEGIC PLAN ACROSS ALL THE PILLARS Nordic footprint reinforced, enhancing access to key markets through the SAS acquisition1 Improve market position and strengthen business models +1.0pt Operating margin increased, reflecting Operating disciplined execution and c

  4. Slide 4: FY 2025: Strong execution delivering all-time record operating result

    FY 2025: STRONG EXECUTION DELIVERING ALL-TIME RECORD OPERATING RESULT All-time high +5% vs. LY +4.9% vs. LY +€400m vs. LY 102.8m €33bn €2.0bn Passengers carried Group revenues Operating result Stable vs. LY +€760m vs. LY +€1.6bn vs. LY 1.7x €1.0bn €2.4bn Net debt/Current EBITDA Rec. adj. operating E

  5. Slide 5: Celebrating another year of collective commercial achievements

    CELEBRATING ANOTHER YEAR OF COLLECTIVE COMMERCIAL ACHIEVEMENTS 5

  6. Slide 6: 20 years of miles: building lasting customer loyalty

    20 YEARS OF MILES, 20 YEARS OF MEMORIES: BUILDING LASTING CUSTOMER LOYALTY 30M+ Flying Blue Members 40 Partner Airlines 100+ Commercial Partners Best Airline Loyalty Program1 for the second consecutive year 12+ Co-Branded Credit Cards 1.2bn Miles Donated to NGO’s Notes: (1) according to point.me 6

  7. Slide 7: Sustained premiumization driving revenue growth

    SUSTAINED PREMIUMIZATION DRIVING REVENUE GROWTH REVENUE MIX EVOLUTION La Première/Business 2025 vs. 2024 vs. 2023, % Premium/Comfort Economy Premium Revenue1 26.9% 28.1% 2025 vs. 2024 25.6% +3pts +2pts 8.0% +17% La Première 5.6% 7.1% +9% Business +18% Premium/Comfort2 (with stable load factors) +23%

  8. Slide 8: Significant ancillary revenue growth continues across all airlines

    SIGNIFICANT ANCILLARY REVENUE GROWTH CONTINUES ACROSS ALL AIRLINES ANCILLARY REVENUE EVOLUTION1 €M, 2024, 2025 +23% The revenue of all ancillary segments €2.1bn continue to progress throughout the +26% group. €1.7bn €0.8bn €1.3bn €0.6bn Seat Selection segment achieves double- €0.4bn digit growth for

  9. Slide 9: Significant progress on sustainability recognized by the industry

    SIGNIFICANT PROGRESS ON SUSTAINABILITY RECOGNIZED BY THE INDUSTRY New generation aircraft making our fleet more 35% efficient and reducing our noise footprint SAF blend on total fuel consumed, ~2.9% significantly above the regulatory requirements1 Investments in new generation aircraft and voluntary

  10. Slide 10: The strategic contribution of Cargo & MRO

    THE STRATEGIC CONTRIBUTION OF CARGO & MRO: LEVERAGING INNOVATION FOR THE CUSTOMER-CENTRICITY More than 90% of all bookings made through More than 30 new contracts leading to order book digital channels amounting to a total of $10.7bn Global rollout of the new CRM360 Next gen technologies: Leap indus

  11. Slide 11: FY 2025 Financial Results

    FY 2025 FINANCIAL RESULTS Steven Zaat – Chief Financial Officer Air France-KLM 11

  12. Slide 12: FY 2025: Operating result breaking the €2bn mark, margin improving to 6.1%

    FY 2025: OPERATING RESULT BREAKING THE €2BN MARK, MARGIN IMPROVING TO 6.1% Operating margin Operating result evolution +403m 2.004 1.601 6.1% +1.0pt 285 -322 394 46 Revenues YoY 2024 Unit revenue1 Unit cost2 Fuel price3 Currency 2025 & other €33.0bn +4.9% YoY Net result Operating Key Performance Ind

  13. Slide 13: Positive margin development for Network and Maintenance

    POSITIVE MARGIN DEVELOPMENT FOR NETWORK AND MAINTENANCE TRANSAVIA TEMPORARILY HAMPERED BY TAKE OVER OF AIR FRANCE OPERATIONS AT ORLY 1 Unit Revenue2 Revenues Operating result Operating FY 2025 vs FY 2024 Capacity (€ m) Change (€ m) Change margin Change Constant Curr. +3.3% +2.0% 24,828 +4.0% Network

  14. Slide 14: Continued improvement at Air France, KLM needs to accelerate transformation

    CONTINUED IMPROVEMENT AT AIR FRANCE, KLM NEEDS TO ACCELERATE FURTHER TRANSFORMATION FY 2025 vs FY 2024 Capacity Revenues Change Operating Change Operating Change change (€ m) YoY result YoY margin YoY (€ m) +4.9% 20,242 +5.3% 1,362 +382 6.7% +1.6 pt +5.0% 13,205 +3.9% 416 +1 3.2% -0.1 pt 1 886 +9.2%

  15. Slide 15: Improvement in profitability driving operating free cash flow up by €1.5bn

    IMPROVEMENT IN PROFITABILITY DRIVING OPERATING FREE CASH FLOW UP BY €1.5BN VS 2024 2025 Free cash flow evolution (In € m) 2025 Net debt evolution (In € m) 273 4,782 741 305 8,392 FY 2024: 7,332 2,321 -310 €446m 493 FY 2024: 1,997 €271m -1,997 -3,058 1,030 -1,460 Cash flow Payment of Recurring Net de

  16. Slide 16: Continued balance sheet simplification

    CONTINUED BALANCE SHEET SIMPLIFICATION Cash at hand at €9.4bn well above targeted liquidity level between €6bn and €8bn Successful €650m 5-year senior bond issuance in January 2026 with 3.875% fixed annual coupon and lowest credit spread for a bond issued by AF-KLM. • Proceeds to redeem the first tr

  17. Slide 17: Q4 2025 Financial Results

    Q4 2025 FINANCIAL RESULTS Steven Zaat – Chief Financial Officer Air France-KLM 17

  18. Slide 18: Operating result broadly stable with unit cost decrease

    DESPITE FRONT LOADING CARGO LAST YEAR, OPERATING RESULT BROADLY STABLE WITH UNIT COST DECREASE Operating margin Operating result evolution (in €m) -3m 396 393 4.8% -0.2pt 31 -66 79 -78 31 Revenues YoY Q4 2024 Pax Unit Cargo Unit Unit cost2 Fuel price3 Currency Q4 2025 revenue1 revenue1 & other €8.2b

  19. Slide 19: A mixed unit revenue trend, robust passenger network, cargo softer

    A MIXED UNIT REVENUE TREND, ROBUST PASSENGER NETWORK, CARGO SOFTER AS EXPECTED 1 Unit Revenue2 Revenues Operating result Operating Q4 2025 vs Q4 2024 Capacity Change Change Change Constant Curr. (€ m) (€ m) margin +4.3% +2.2% 6,198 +4.7% Network 414 -18m 6.0% -0.5 pt +4.5% -10.7% 661 -8.5% Transavia

  20. Slide 20: Operating result broadly stable

    OPERATING RESULT BROADLY STABLE Capacity Revenues Change Operating Change Operating Change Q4 2025 vs Q4 2024 change (€ m) YoY result YoY margin YoY (€ m) +6.5% 5,026 +3.8% 256 -46 5.1% -1.1 pt +6.7% 3,269 +3.5% 78 +27 2.4% +0.8 pt 1 241 +16.4% 58 +14 24.1% +2.8 pt +6.6% 8,186 +3.9% 393 -3 4.8% -0.2

  21. Slide 21: North Atlantic trends improving and premium cabins remaining supportive

    NORTH ATLANTIC TRENDS IMPROVING AND PREMIUM CABINS REMAINING SUPPORTIVE Q4 2025 vs Q4 2024 Total Long-Haul Short & Medium-Haul1 Transavia Total 87% 83% 84% 86% 21.8% 6.6% 2.3% 4.5% 3.4% 3.2% 0.1% -1.3 pt -1.1 pt -1.5 pt -2.3 pt -3.7% First & Business1 77% North America Caribbean & Indian Ocean Asia

  22. Slide 22: Unit cost reduction driven by productivity gains

    UNIT COST REDUCTION DRIVEN BY PRODUCTIVITY GAINS Q4 Unit cost per ASK evolution In % year-over-year -2.4% 0.7% -1.9% -1.1% -0.6% 0.6% -0.6% 0.7% Labour price Productivity Fuel efficiency Other ATC & Airport charges Premiumization Unit cost1 ATC & Airport charges, mainly driven by the 41% tariff incr

  23. Slide 23: Outlook

    OUTLOOK Steven Zaat – Chief Financial Officer Air France-KLM 23

  24. Slide 24: Q1 2026 forward bookings in line with previous quarters

    Q1 2026 FORWARD BOOKINGS IN LINE WITH PREVIOUS QUARTERS Long-Haul Short & Medium-Haul Transavia 82% 81% 71% 74% 72% 69% Q1 2025 2026 2025 2026 2025 2026 • Early January weather episode in Amsterdam and Paris impacting operating result by €90m in Q1 2026 Forward booking load factor 2025 Forward booki

  25. Slide 25: Total fuel bill expected below last year, with 62% hedged

    TOTAL FUEL BILL EXPECTED BELOW LAST YEAR, WITH 62% HEDGED SAF premium 230 ~230 cost (€m) FY 2026 6,900 ~6,900 62% hedged Fuel bill after hedge excl SAF ($m) FY 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2026 68 67 66 65 65 66 Market Brent ($ per bbl) Jet fuel ($ per metric ton) 792 802 784 770 760 778

  26. Slide 26: New hedging policy increases hedge maturities

    NEW HEDGING POLICY INCREASES HEDGE MATURITIES AND WILL ADD C.20% HEDGING ON 1 YEAR CONSUMPTION Old rolling fuel hedging policy New rolling fuel hedging policy1 as per January 1st, 2026 70% 70% 70% 70% 60% 55% 50% 40% 40% 30% 25% 20% 10% 10% Current Q+1 Q+2 Q+3 Q+4 Q+5 Current Q+1 Q+2 Q+3 Q+4 Q+5 Q+6

  27. Slide 27: 2026 Capacity Outlook

    2026 CAPACITY OUTLOOK FY 2026 vs 2025 Long Haul c.+4% Short and Medium Haul Stable Transavia c.+10% Total +3-5% vs. 2025 27

  28. Slide 28: 2026 Outlook

    2026 OUTLOOK FY 2026 Group Capacity +3-5% vs. 2025 0% to +2% Unit cost1 Including 0.5% increase linked to premiumization Net Capex (c.80% fleet/fleet related) c.3bn Net Debt/Current EBITDA 1.5x to 2.0x 1) At constant fuel price including SAF, constant currency and excluding Emission Trading Scheme c

  29. Slide 29: 2028 Outlook

    2028 OUTLOOK Adj. Operating free Operating margin Unit cost1 Leverage cash flow Significantly Reduction Investment grade Above 8% positive Disciplined capital expenditures 1) At constant fuel price including SAF, constant currency and excluding Emission Trading Scheme cost (ETS) 29

  30. Slide 30: Concluding Remarks

    CONCLUDING REMARKS Benjamin Smith – Chief Executive Officer Air France-KLM 30

  31. Slide 31: To Conclude

    TO CONCLUDE 2025: IMPROVED PERFORMANCE IN A DEMANDING ENVIRONMENT Disciplined execution delivering revenue and margin growth despite ongoing external challenges. PREMIUMIZATION GAINING MOMENTUM Sustained premium demand supported by new cabin experiences, OUTLOOK redesigned airport lounges and an enh

  32. Slide 32: Appendix

    APPENDIX 32

  33. Slide 33: Currency impact on operating result

    CURRENCY IMPACT ON OPERATING RESULT Currency impact Revenues and costs per currency on revenues and costs FY 2025 In € m 7 REVENUES COSTS 211 US dollar US dollar (and related 20 currencies) 30 -204 60 20 70 Euro Other Other currencies Q4 2025 currencies (mainly euro) Currency impact on revenues Curr

  34. Slide 34: Debt redemption profile at 31 December 2025

    DEBT REDEMPTION PROFILE AT 31 DECEMBER 2025 Debt reimbursement profile(1) In €m 500 650 400 500 500 1,700 800 850 700 650 650 600 2026 2027 2028 2029 2030 2031 2032 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%

  35. Slide 35: Investor Relations department

    Investor Relations department Michiel Klinkers Marouane Mami Michiel.klinkers@airfranceklm.com Marouane.mami@airfranceklm.com

Air France-KLM — Q4 2025 Earnings Presentation on 6ix