Air France-KLM Q2 Operating Profit Rises 43% on Premium Sales

Air France-KLM reported a strong second quarter in 2025 with net income surging to 605 million euros, up from 121 million euros the previous year, driven by a 6.2% increase in revenues to 8.4 billion euros and stable passenger load factors. The group's operating profit reached 736 million euros, boosted by strong bookings in premium cabins such as new first-class and premium economy offerings, despite global uncertainties including U.S. tariff tensions under President Donald Trump's administration. The airline's strategic focus on premium services has enhanced its pricing power and resilience against potential declines in transatlantic travel, with CEO Ben Smith emphasizing ongoing investments in aspirational travel experiences. However, KLM, a subsidiary, faced operational challenges and rising costs, including higher labor expenses and airport charges, resulting in a modest operating loss for the first half of the year despite revenue growth. Cargo and maintenance divisions showed solid performance, and Transavia improved production and revenues amid overcoming earlier issues. Overall, Air France-KLM confirmed its full-year outlook, highlighting the importance of premiumization and cost management for sustained profitability.