Air France-KLM books better than expected results; Profits still halved compared to 2023

Air France-KLM achieved a net profit of 489 million euros last year on a turnover of almost 31.5 billion euros, the aviation group announced on Thursday. The company’s profits nearly halved compared to 2023, but its results were still well above what analysts expected, thanks to a strong fourth quarter.

Air France-KLM faced multiple financial setbacks in 2024, including having to compensate customers after disruptions and labor strikes, the Olympic Games in Paris resulting in lower summer bookings, and high labor costs at KLM. In November, the group warned that the higher-than-expected costs would impact its results.

But a strong fourth quarter helped the airline combination come out well above analysts' predictions. In the fourth quarter, Air France-KLM recorded an operating profit of 396 million euros. Analysts polled by LSEG expected an operating profit of 250 million euros in the fourth quarter, Reuters reported. For the full year, Air France-KLM reported a 6.4 percent fall in operating profit to 1.6 billion euros, also much better than the 1.35 billion euros analysts expected.

“In the fourth quarter of 2024, Air France-KLM delivered a particularly strong finish, concluding a year shaped by both operational and external challenges,” said Air France-KLM CEO Benjamin Smith. The airlines under the company took more passengers to more destinations and successfully implemented some cost management measures.

This year, Air France-KLM expects costs to increase further, partly due to Schiphol hiking its port fees for airlines and the French government increasing tax on airline tickets. These two developments will impact 2025’s results by up to 300 million euros, the company expects.