Q2 2026 Air France KLM SA Earnings Call Transcript
Key Points
- Group revenues increased by nearly 10% to EUR9.3 billion, supported by growth across all businesses.
- Premium cabins now represent 38.5% of total passenger revenues, with Business and La Premiere revenues growing 11% and Premium Comfort revenues up 13%.
- Air France-KLM (AFLYY) successfully recaptured approximately 86% of the additional fuel bill through strong commercial performance and disciplined pricing.
- Recurring adjusted operating free cash flow reached EUR920 million for the first half of the year, with cash at hand rising to over EUR10 billion.
- KLM stabilized its results and showed a reduction in unit costs, indicating the 'back on track' program is becoming effective.
- Higher fuel prices weighed on Q2 profitability, with the fuel bill increasing by approximately EUR900 million compared to last year.
- Adjusted operating profit fell to EUR484 million, representing an operating margin of 5.2%.
- Transavia struggled to offset fuel cost increases, with unit revenue up only 1.6% against a needed ~10% to recapture fuel impact.
- Supply chain issues, particularly a lack of spare parts for engines, led to higher maintenance costs and hampered maintenance business results.
- Bookings for Q3 show a drop of 2% for long-haul and short/medium-haul, with a trend toward later bookings due to higher ticket prices.
Good morning and welcome to the Air France KLM Half Year 2026 results presentation. Today's conference is being recorded. During the presentation, participants will be on listen mode only. At the end of the presentation, analysts will be able to ask questions by dialing pound key five on their telephone keypad. At this time, I would like to turn the conference over to Benjamin Smith, CEO and Steven Zott, CFO. Please go ahead, sirs.
Thank you.
Good morning, everyone, and thank you for joining us for Air France KLM second quarter 2026 results presentation.
As usual, I'll begin with the strategic and operational highlights of the quarter before handing over to Steven Zott, our CFO, who will walk you through our financial performance in detail. I will then return to take your questions together with Steven, Andre Guy, Air France CEO, and Marianne Rintel, KLM CEO.
As the entire industry, Air France KLM continued to operate in a highly
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