Air France-KLM saw its net profit decline by 71% to 190 million euros in the second quarter. This is due to the sharp rise in kerosene prices caused by the war in the Middle East.

On the other hand, the airline group managed to pass on the lion’s share of those higher kerosene costs to passengers. The group passed on 88% of the higher fuel costs through higher ticket prices.

Revenue from cargo flights rose

Air France-KLM’s kerosene costs rose by more than 800 million euros in the past quarter compared to the same period last year. For the full year, the fuel bill is expected to reach 8.9 billion dollars, down from the previously estimated 9.3 billion dollars. In 2025, that bill stood at 6.0 billion dollars.

Revenue from cargo flights rose by more than a quarter (+26.7%). According to the company, this is also because of the war in Iran. Air transport offered customers greater certainty than shipping by sea. Here, too, prices were raised.

Net loss for the first half of the year

The company reported a net loss for the first half of the year, as it did in 2021, 2022, and 2024. This time, the loss amounted to 61 million euros, compared with a net profit of 401 million euros in 2025.

In general, KLM kept adjusted operating profit broadly stable at 176 million euros, Air France’s profit fell by 290 million to 225 million euros, and Transavia slipped to a 35 million euros operating loss because its modest 1.6% unit-revenue increase could not compensate for a 50% rise in its fuel expense.

The group has also slightly adjusted its capacity growth forecast for 2026 to 2 to 3% – down from 2 to 4% previously. For example, flight frequencies will be reduced on routes with strong competition in Europe, such as Düsseldorf and London.

Focus more on premium long-haul classes

Nevertheless, CEO Benjamin Smith described the company’s commercial performance to date as solid, driven by continued strong demand for travel in the premium classes, particularly to and from Asia and North America.

Like many of its competitors, Air France-KLM wants to encourage its customers – especially on long-haul routes, where margins are higher – to pay more for greater comfort.

By the end of the year, the integration of the Scandinavian airline SAS is also expected to be finalized (i.e., approval by the regulatory authorities). The acquisition will increase the group’s stake in SAS from 19,9% to 60,5%.

As a result, the group will add a third major international transfer hub to its portfolio (Copenhagen), alongside Paris-Charles de Gaulle and Amsterdam-Schiphol.

Air France-KLM also aims to acquire up to 49.9% of TAP Air Portugal, which is currently being privatized. On Wednesday, the company submitted a binding bid to that effect, at the same time as its rival Lufthansa.