Air France-KLM Earns More Money Than Expected, But Faces Rising Fuel Costs

Air France-KLM, one of Europe's biggest airline groups, made more money than experts expected in the summer of 2024. The company earned €1.34 billion in operating profit — that's the money left over after paying most of its bills — between July and September. Analysts had predicted only about €1.1 billion, so the result was a pleasant surprise. Strong demand for flights to India and Asia, along with popular business-class seats, helped push profits higher.

Even with the good news on profits, Air France-KLM said its fuel costs are going up. The company now expects to spend $9.2 billion on jet fuel in 2026, which is $300 million more than it thought earlier. Fuel is one of the biggest costs for any airline, so a rising fuel bill can eat into profits quickly. The airline group also lowered its plan to grow the number of flights it offers, expecting about 2% more capacity in 2026 instead of the 2% to 3% it had planned before.

Despite the higher fuel costs, Air France-KLM has found ways to protect itself. The company uses a strategy called 'hedging,' which means it locks in fuel prices in advance so it isn't hit as hard when prices suddenly rise. CEO Ben Smith said that keeping costs under control and managing the fuel bill carefully helped the airline stay on track. He also pointed to strong ticket sales on important routes as a key reason for the good results.

Meanwhile, KLM — the Dutch part of the airline group — announced it is cutting around 1,000 jobs. This is part of a bigger plan that affects about 5,000 positions in total at the airline. KLM's CEO, Bas Brouns, called the job cuts 'far-reaching' and 'sometimes painful,' but said they are necessary to save money. The airline also plans to update its fleet of planes and reorganize how it handles luggage, cargo shipping, and aircraft repairs.