Air France-KLM shares surge as FY operating profits top €2bn

(Sharecast News) - Shares in Air France-KLM jumped by more than tenth on Thursday after the French-Dutch airline group posted a record annual operating profit as a "premiumisation" strategy drove revenues higher while fuel prices dropped. The carrier reported a flat operating profit of €393m for the fourth quarter, but that still lifted full-year operating profits to €2.0bn, up €403m from the year before. That was comfortably ahead of the €1.88bn consensus forecast.

Revenues totalled €33.01bn, up 4.9% over 2024, helped by a 5% increase in passengers flown to 102.84m as group capacity (measured in available seat kilometres) rose 4.9%.

Chief executive Benjamin Smith labelled it a "robust performance in a challenging environment".

"We advanced our premiumisation strategy through enhanced customer experiences across our airlines -including new cabins, high-speed Wi-Fi, and lounges around the world - all while making significant progress toward our sustainability ambitions thanks to fleet renewal and increased SAF usage," Smith said.

The company is guiding to 3.5% capacity growth in 2026, with unit costs expected to be flat to 2% higher, including a +0.5% impact from premiumisation.

"Despite ongoing external uncertainty, we approach 2026 with confidence and a commitment to executing our strategic roadmap with rigour and discipline in order to reach our medium-term goals."

The stock was up 11.7% at €12.97 by 0828 GMT.