Q1 2025 Air France KLM SA Earnings Call Transcript
Key Points
- Air France-KLM (AFLYY) reported an 8% year-over-year increase in revenues, driven by strong performance across all activities, including maintenance.
- The operating result improved by EUR161 million, reaching a negative EUR328 million, a significant improvement from the previous year.
- The net debt to EBITDA ratio stands at 1.6 times, aligning with the company's midterm ambition range of 1.5 to 2.0 times.
- The company generated a positive recurring adjusted operating free cash flow of EUR0.8 billion, showcasing robust cash generation capabilities.
- The share of new generation aircraft increased by 7 percentage points, now representing 28% of the total fleet, aligning with sustainability goals.
- Despite improvements, the operating result remains negative at EUR328 million.
- Transavia's unit revenue was flat, impacted by factors such as bad weather in Spain and the introduction of a ticket tax in the Netherlands.
- The company faces increased costs due to a 40% rise in Schiphol tariffs, impacting unit costs.
- There is a 3% gap in forward booking load factors for the third quarter, raising concerns about future demand.
- The company is experiencing softness in economy class bookings on transatlantic routes, requiring potential price stimulation.
Good morning and welcome to the Air France KLM first-quarter 2025 results, is being recorded.
At this time, I would like to turn the conference over to Ben Smith, CEO; and Steven Zaat, CFO. Please go ahead, sir.
Okay, thank you, operator. Good morning, everyone, and thank you for joining us today for the presentation of Air France KLM's results for the first quarter of 2025. Today I'm joined by Steven Zaat, our group CFO.
I'll start by covering the key highlights of the quarter before I hand it over to Steven, who will walk you through the detailed financial results, and then I'll close with an overview of our medium-term ambitions before opening the floor to your questions.
So moving to slide three, so we're very proud to report that the group delivered an improved performance this quarter, once again demonstrating the resilience and strength of our business model. Revenues were up 8% year over year, driven by a solid
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