Air France-KLM reports €800 million rise in quarterly fuel bill

Air France-KLM reported its fuel bill for the three months to June was more than €800 million higher than forecast due to the US war on Iran in half-year results released on Thursday.

However, the group still recorded a €190 million profit for the three months to June, in a turnaround from a €459 million loss last year, and Air France-KLM’s half-year losses were reduced to €61 million compared with €462 million in the first half of 2025.

Group revenue for April to June was up 10% year on year to almost €9.3 billion and half-year revenue up more than 7% to €16.8 billion.

Chief executive Ben Smith reported a small decline in capacity growth from 2%-4% to 2%-3% for the full year.

He noted: “The sharp increase in fuel prices significantly impacted our results during the second quarter. [But] thanks to agile pricing and cost discipline, we were largely able to mitigate this.”

The group reported it recovered about 85% of the additional fuel costs, having estimated it would recover nearer 60%.

Mitigation efforts included “a surcharge per ticket” and freeze on hiring of non-operational staff, as well as “active passenger yield management and benefits from increased demand, mainly on non-stop Asia, India and East Africa routes”.

Smith noted the group reduced its capacity to the Middle East by 80% and increased that to Asia by 4%.

He reported “high-yielding” long-haul connecting traffic was complemented by “strong local close-in demand for European and domestic routes for Air France”.

However, he warned the “highly volatile environment” would continue, with the group forecasting its full-year fuel bill would be $2 billion higher than in 2025 at $8.9 billion.

Group passenger numbers in the quarter to June were up almost 4% year on year at 28.3 million, ahead of a 2.6% increase in capacity.            

Netherlands-based KLM reported improved half-year results, with an operating profit of €68 million against a €24-million loss the previous year, and its revenue up 8% year on year.

However, KLM chief executive Marjan Rintel declared this “not sufficient for the long-term”, saying: “The result is still not good enough to strengthen the financial foundation of KLM for the future. Further strengthening is essential.”

Rintel said: “We must remain realistic: one good half year does not make KLM structurally strong and robust. More is needed in the current operating environment.”

Chief financial officer Bas Brouns said: “The results provide confidence but not comfort.”