Air France-Klm Ads (AFLYY) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to the Air France KLM third quarter 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 Stephen Zat, CFO. Please go ahead, sirs. Okay, thank you. Good morning, everyone, and thank you for joining us today for the presentation of Air France KLM's third quarter results presentation. As usual, I'll start by sharing the key highlights of the quarter, and then I'll hand it over to our CFO, Stephen Zott, who will walk you through the financial results in more detail. I'll return at the end with a few concluding remarks before we open the floor for any questions you might have. This quarter, once again, demonstrates the resilience of our business model in a challenging environment. In the third quarter, Afron's KLM delivered a stable operating margin of 13.1%. with revenues increasing by 3% year-over-year to €9.2 billion, supported by a 5% increase in passenger traffic, which reached 29.2 million passengers. Passenger network unit revenue was up 0.5% at constant currency, driven by continued strong demand for premium cabins, which I will elaborate on later. Meanwhile, our maintenance business also made a solid contribution. We managed to limit our unit cost increase to 1.3% despite higher airport and air traffic control charges. As a result, operating income improved by €23 million year-over-year to €1.2 billion. Our balance sheet remains robust with leverage at 1.6 times. Year-to-date recurring adjusted operating free cash flow reached €700 million. confirming our ability to combine financial discipline with continued investment in our future. Finally, fleet renewal continues to advance, with new generation aircraft now representing nearly one-third of t...