Air France-klm Sa · EURONEXT:AF
Air France-klm Sa — Q2 2026 Earnings Presentation
30 slides from Air France-klm Sa's earnings presentation, Jul 30, 2026
Slide 1: Q2 2026 Results
Q2 2026 RESULTS
Slide 2: Q2 2026 Highlights
Q2 2026 HIGHLIGHTS Benjamin Smith – Chief Executive Officer Air France-KLM 2
Slide 3: Strong unit revenue mitigated circa 85% of the fuel headwind
Q2 STRONG UNIT REVENUE MITIGATED CIRCA 85% OF THE FUEL HEADWIND Passengers carried 28.3m +3.9% vs. Q2 2025 • Group revenues up 9.9% year-on-year to €9.3bn, driven by growth across all businesses. • Unit revenue1 up 8.7% supported by ongoing premiumization, reduced industry capacity due to the Middle
Slide 4: Global premium demand delivers strong revenue gains across key regions
GLOBAL PREMIUM DEMAND DELIVERS STRONG REVENUE GAINS ACROSS KEY REGIONS Passenger revenue share evolution H1 2024, H1 2025, H1 2026 2pt 3pt 11% Revenue growth in Business and La Première • India +21%, Asia +17%, US +14% 29.9% 28.6% • +25% La Première revenue vs. +12% extra seats 27.1% • Most of the g
Slide 5: We continuously elevate the customer journey & brand prestige across the group
WE CONTINUOUSLY ELEVATE THE CUSTOMER JOURNEY & BRAND PRESTIGE ACROSS THE GROUP 5
Slide 6: Pan-European platform expansion drives strategy to become a global champion
OUR PAN EUROPEAN PLATFORM EXPANSION UNLOCKS OPPORTUNITIES AND DRIVES STRATEGY TO BECOME A GLOBAL CHAMPION Intention to Submitted binding offer increase our stake in SAS to acquire a strategic by the end of the year¹ stake in TAP Air Portugal up to 19.9% 60.5% 49.9% 1) Subject to EU approval 6
Slide 7: Q2 2026 Financial Results
Q2 2026 FINANCIAL RESULTS Steven Zaat – Chief Financial Officer Air France-KLM 7
Slide 8: Strong Q2 unit revenue offset circa 85% of the fuel headwind
STRONG Q2 UNIT REVENUE OFFSET CIRCA 85% OF THE FUEL HEADWIND Operating margin Adjusted operating profit evolution (in €m) -251m -80 735 672 -804 484 5.2% -3.5pts -38 Revenues YoY Q2 2025 Unit revenue1 Unit cost2 Fuel price3 Currency Q2 2026 & other €9.3bn +9.9% YoY Net result Operating Key Performan
Slide 9: Group performance driven by strong network and cargo unit revenue
GROUP PERFORMANCE DRIVEN BY STRONG NETWORK AND CARGO UNIT REVENUE Adjusted Unit Revenues Operating Operating Q2 2026 vs Q2 2025 Capacity 1 Revenue 2 Change Change Change (€ m) Profit/Loss margin Constant Curr. (€ m) +1.7% +8.7% 6,895 +8.2% Network 466 -204m 6.1% -3.5 pt +2.9% +26.7% 711 +25.7% Trans
Slide 10: Flying Blue margin accelerates while airline margins impacted by higher fuel prices
FLYING BLUE MARGIN ACCELERATES WHILE AIRLINE MARGINS ARE IMPACTED BY HIGHER FUEL PRICES Adjusted Capacity Revenues Change Change Operating Change Q2 2026 vs Q2 2025 change (€ m) YoY Operating YoY margin YoY Profit (€ m) +0.5% 5,516 +6.5% 225 -290 4.1% -5.9 pt +5.7% 3,867 +13.8% 176 +3 4.5% -0.5 pt 1
Slide 11: Premium and long-haul demand continued to support strong yields, mainly Asia
PREMIUM AND LONG-HAUL DEMAND CONTINUED TO SUPPORT STRONG YIELDS, MAINLY ASIA Q2 2026 vs Q2 2025 Total Total Long-Haul Short & Medium-Haul1 Transavia 88% 87% 86% 91% 11.3% 7.3% 7.6% 2.0% 0.3% 1.1 pt 3.6% 1.7 pt 2.6% -0.1 pt -0.9 pt -0.2% First & Business1 North America Caribbean & Indian Ocean Asia &
Slide 12: Unit cost development in line with full year guidance
UNIT COST DEVELOPMENT IN LINE WITH FULL YEAR GUIDANCE Q2 Unit cost¹ per ASK evolution In % year-over-year -0.3% 0.4% 0.9% 1.0% Labour price Productivity Premiumization Unit cost • Productivity impacted by lower ASK’s, hence not fully compensating labor price increase. • Improved operations offset by
Slide 13: Positive cash flow development and stable net debt
POSITIVE CASH FLOW DEVELOPMENT AND STABLE NET DEBT H1 2026 Free cash flow evolution (In €m) H1 2026 Net debt evolution (In €m) 969 H1 2025: H1 2025: 8,392 8,376 -1,445 €1,353m¹ €780m¹ 440 113 1,649 -1,173 604 619 1,173 -864 928 Cash flow Change Net Operating Exceptionals² Payment of Recurring Net de
Slide 14: Further strengthening the balance sheet
FURTHER STRENGTHENING THE BALANCE SHEET STRONG €10.3bn¹ €1.15bn €1.0bn LIQUIDITY Cash at hand Senior bonds issued in 2026 New multi-purpose credit facility (undrawn) AND FUNDING Well above targeted liquidity €650m at 3.875% To refinance existing financial instruments ACCESS level between €6bn to €8b
Slide 15: Outlook
OUTLOOK Steven Zaat – Chief Financial Officer Air France-KLM 15
Slide 16: FY2026 fuel outlook improved by $0.4 billion since April
FY2026 FUEL OUTLOOK IMPROVED BY $0.4 BILLION SINCE APRIL FUEL BILL REMAINS $2.0 BILLION ABOVE FY2025 SAF premium ~ 230 ~ 250 cost (€m) ~8,900 FY 2027 6,900 YoY evolution ($m): 40% hedged +900 +600 +500 Fuel bill after hedge excl SAF ($m) FY 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2026 Market Brent (
Slide 17: Late booking trend and successful yield management continue
LATE BOOKING TREND AND SUCCESSFUL YIELD MANAGEMENT CONTINUE Long-Haul Short & Medium-Haul Transavia Q3 74% 72% 65% 63% 69% 71% 2025 2026 2025 2026 2025 2026 Forward booking load factor 2025 Forward booking load factor 2026 Snapshots of the 22nd of July 2025 and 2026 17
Slide 18: FY 2026 capacity outlook: actively managed to optimize returns
FY 2026 CAPACITY OUTLOOK: ACTIVELY MANAGED TO OPTIMIZE RETURNS IN A VOLATILE CONTEXT FY 2026 vs 2025 Circa +2% Long Haul (Previously +2% to +4%) Circa -1% Short and Medium Haul (Previously Stable) Circa +8% Transavia (Previously +8% to +10%) +2% to +3% Total (Previously +2% to +4%) 18
Slide 19: FY 2026 capacity outlook revised, unit cost guidance unchanged
FY 2026 CAPACITY OUTLOOK REVISED, UNIT COST GUIDANCE UNCHANGED FY 2026 +2% to +3% vs. 2025 Group Capacity (Previously +2% to +4%) 0% to +2% Including 0.5% increase linked to Unit cost1 cabin premiumization (Unchanged) Below €3bn Net Capex (c.80% fleet/fleet related) (Unchanged) 1.5x to 2.0x Net Debt
Slide 20: Concluding Remarks
CONCLUDING REMARKS Benjamin Smith – Chief Executive Officer Air France-KLM 20
Slide 21: Conclusion: revenue quality and disciplined cost control underpin resilient results
CONCLUSION: REVENUE QUALITY AND DISCIPLINED COST CONTROL UNDERPIN RESILIENT RESULTS STRONG REVENUES DRIVEN BY ALL BUSINESSES COSTS WELL CONTROLLED WITHIN GUIDANCE FURTHER SIMPLIFIED BALANCE SHEET & STRONG CASH POSITION FY 2026 FINANCIAL OUTLOOK CONFIRMED, WITH AGILE CAPACITY MANAGEMENT 21
Slide 22: Appendix
APPENDIX 22
Slide 23: Implementation IFRS18 as of Q2 2026
IMPLEMENTATION IFRS18 AS OF Q2 2026 In M€ YTD YTD (Y-1) Quarter Quarter (Y-1) Full Year 2025 CURRENT OPERATING INCOME 448 409 476 736 2,004 (BEFORE IFRS 18) Dividends Received 0 0 0 0 -1 Pension – Interest Cost 28 26 13 13 50 Realized foreign exchange gain (losses) 2 -4 -5 -14 16 - operating ADJUSTE
Slide 24: H1 2026 Business Highlights
H1 2026 BUSINESS HIGHLIGHTS Operating margin Adjusted operating profit evolution (in €m) +47m -112 883 -720 478 2.9% +0.1pt 431 -4 Revenues YoY H1 2025 Unit revenue1 Unit cost2 Fuel price3 Currency H1 2026 & other €16.8bn +7.4% YoY Net result Operating Key Performance Indicators Unit revenue1 Unit c
Slide 25: H1 2026 Business Overview
H1 2026 BUSINESS OVERVIEW Unit Adjusted Revenues Operating H1 2026 vs H1 2025 Capacity (1) Revenue (2) Change Operating Change Change Constant Curr. (€ m) margin Profit/Loss (€ m) +2.2% +7.0% 12,593 +6.8% Network 629 +134m 4.5% +0.7 pt +2.6% +12.6% 1,313 +10.5% Transavia +9.7% -0.7% 1,628 +10.6% -26
Slide 26: H1 2026 Airlines and Loyalty
H1 2026 AIRLINES AND LOYALTY H1 2026 vs H1 2025 Capacity Revenues Change Adjusted Operating Change Operating Change change (€ m) YoY Profit (€ m) YoY margin YoY +2.2% 10,084 +5.8% 251 -103 2.5% -1.2 pt +4.8% 6,854 +8.0% 68 +92 1.0% +1.4 pt 1 583 +36.5% 169 +66 29.0% +4.9 pt +3.3% 16,756 +7.4% 478 +4
Slide 27: 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 -56 REVENUES COSTS 127 US dollar US dollar (and related 20 currencies) 30 -183 60 20 70 Euro Other Other currencies Q2 2026 currencies (mainly euro) Currency impact on revenues Cu
Slide 28: Debt redemption profile at 30 June 2026
DEBT REDEMPTION PROFILE AT 30 JUNE 2026 Debt reimbursement profile(1,2) In €m 650 2,127 500 500 650 127 758 706 876 707 630 339 2026 2027 2028 2029 2030 2031 2032 and beyond Bonds issued by Air France-KLM December 2026: August 2030: Other long-term Debt: AF and KLM Sustainability-Linked Bonds AFKL 4
Slide 29: Disclaimer
DISCLAIMER Certain information included in this presentation are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and future business stra
Slide 30: Investor Relations department
Investor Relations department Michiel Klinkers Loulou de Winter Michiel.Klinkers@airfranceklm.com Loulou-de.Winter@airfranceklm.com