Headlines
Air France-KLM's Q2 profit rises, helped by premium sales
Published by Global Banking and Finance Review
Posted on July 31, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on July 31, 2025
2 min readLast updated: January 22, 2026
Air France-KLM's Q2 profit increased to €736M, driven by premium sales, amidst concerns over transatlantic travel due to tariff impacts.
By Jesus Calero and Joanna Plucinska
LONDON (Reuters) -Air France-KLM reported higher second-quarter operating profit on Thursday, citing strong bookings for its premium services even as the sector frets about the knock-on effects from U.S. President Donald Trump's tariff war.
Europe's major airlines have been watching for a possible dip in transatlantic travel as European travellers have shied away from booking trips to the United States this year.
But Air France-KLM highlighted its strategy focused on a new first-class cabin and strong sales for its premium economy cabin, particularly for KLM.
"We are advancing premiumization, pushing the boundaries of aspirational travel with enhanced products and services," Chief Executive Ben Smith said in a statement.
Second-quarter operating profit rose to 736 million euros ($845 million) from 513 million euros for the same quarter last year. That was broadly in line with the 760 million euros expected in an analyst poll compiled by LSEG.
The summer travel season is a key test of how well pricing power and booking trends are holding up for carriers like Air France-KLM heading into the second half of the year.
Air France-KLM previously said it had cut some economy fares to remain competitive. Still, it confirmed its outlook for the full-year.
($1 = 0.8713 euros)
(Editing by Mark Potter)
Operating profit is the income generated from a company's core business operations, excluding deductions of interest and taxes. It reflects the efficiency of a company's management in generating profit from its operations.
Premium services in the airline industry refer to enhanced offerings such as first-class and premium economy seating, which provide passengers with additional comfort, amenities, and services compared to standard economy class.
Market trends are patterns or movements in a market over time, indicating the direction in which it is heading. Understanding these trends helps businesses make informed decisions regarding pricing, marketing, and investment strategies.
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