Air France-Klm Ads (AFLYY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, and welcome to the Air France KLM Group's Q2 and half-year 2025 results presentation. Today's conference is being recorded. At this time, I would like to turn the conference over to Benjamin Smith, CEO, and Steven Zach, CFO of Air France KLM. Please go ahead, sirs. Okay. Thank you, operator. Good morning, everyone, and thank you for joining us today. for the presentation of Air France-KLM's results for the second quarter of 2025. Today, I'm joined by Stephen Zad, Group CFO, Anne Legay, Air France CEO, and Marianne Rintel, KLM CEO. As usual, I'll begin by covering the key highlights of the quarter before handing over to Stephen, who will walk you through the financial results in more detail. I'll then close with an overview of our medium-term ambitions and conclude with remarks before opening the floor to questions. Okay, moving to slide three, Alphonse KLM delivered strong results in the second quarter of 2025 with revenue up 6.2%, and we reported an operating income of 736 million euros, which is an increase of 223 million euros year over year. The operating margin stood at 8.7%, reflecting the continued impact of our strategic choices and disciplined execution. We also made further progress in strengthening our financial profile. Adjusted operating free cash flow reached $0.7 billion for the first half of 2025, and our leverage ratio decreased to 1.5 times, now fully within our target range. At the same time, we continue to invest in fleet renewal. New generation aircraft now represent 30% of the group's fleet. These results underscore the strength of our execution, our financial discipline, and the resilience of our business model, even as we continue to navigate a complex environment marked by geopolitical tensions, rising taxes, and airport charges...