Air France-KLM Group reports revenues up 4.8% in 2024 despite cost headwinds  

Air France-KLM Group has released its latest set of figures for both the final quarter of 2024 (4Q24) as well as its full-year results. The results, announced on March 6, 2025, are generally favourable, with capacity increasing and the Franco-Dutch airline group benefitting from the use of more efficient aircraft. However, KLM is finding headwinds are hampering its overall performance, with a range of cost-cutting measures being actioned to improve its position in 2025 and beyond.

The Air-France-KLM Group includes the parent airlines plus the low-cost airlines Transavia and Transavia France. The Group employs 76,000 and has a combined fleet of 551 aircraft serving over 300 global destinations.

In 4Q24, the Group saw revenues increase by 6.4% to €7.9 billion ($8.7bn), with overall network capacity increasing by a more modest 2.2%. The operating revenue reached €396 million ($436m), an improvement of €453 million ($498m) compared to the same period in 2023. For the full-year results, Group revenues stood at €31.5 billion ($34.6bn), up 4.8% compared to 2023, driven by an increase in capacity of 3.6%, a stable unit revenue, and increased third-party maintenance revenues. Operating revenues reached €1,601 million ($1,761m) with an operating margin of 5.1%.

KLMIn 2024, the Group’s net debt rose to €7.4 billion ($8.1bn), up €2.3 billion ($2.5bn) over 2023 which the Group attributed to a higher new and modified lease debt amount of €1.9 billion ($2.1bn), up €0.7 billion ($0.77bn) compared to 2023), which itself was largely driven by the fleet renewal program plus the extension of current aircraft lease commitments to cover delays in deliveries. Looking ahead to 2025, the Group expects a capacity increase of 4% to 5% compared to 2024, with unit costs increasing to low single digits compared to 2024.

In line with its fleet renewal strategy, the Air France-KLM Group is continuing to take delivery of several new generation aircraft types to improve efficiency and lower operating costs.

Air FranceThese include the Airbus A350 which consumes 25% less fuel per passenger km and is 40% quieter than the previous generation aircraft it replaces, the Airbus A320neo aircraft family, which consumes 15% less fuel per passenger km and is 50% quieter than the previous generation aircraft, and the Airbus A220 which consumes 20% less fuel per passenger km and is 34% quieter than the previous generation aircraft. On the regional side, the Embraer 195-E2 consumes 31% less fuel per passenger km and is 63% quieter compared to the E-190 that it replaces.

By the end of 2024, the Group had 27% of its fleet composed of new generational aircraft and plans to have 80% of its fleet with new generational aircraft by 2030. In 2024, the airline retired 18 of its older generation aircraft, which included Boeing 737-700/800s, Airbus A319s, A320s, and a A330, plus a single Embraer E190. Likewise, in 2024, the Group introduced 41 new planes, which included eight A350s, 19 A320neo family, nine A220s, four Embraer E195s, plus a single 787-10.

KLM / Jason Vermeulen / Arnoud Raeven“In the fourth quarter of 2024, Air France-KLM delivered a particularly strong finish, concluding a year shaped by both operational and external challenges,” commented  Benjamin Smith, the Group’s CEO. “Throughout these headwinds, we remained steadfast in our commitment to offer a premium, customer-centric service and to advance our sustainability roadmap through continued fleet renewal and ambitious SAF initiatives. We also broadened our global reach by introducing new routes and reinforcing strategic partnerships, including our recent acquisition of a minority stake in SAS, which already shows promising results.”

“As we celebrated our 20th anniversary as a Group, the Olympic Games provided a unique platform to demonstrate our operational expertise and capabilities and offered unparalleled visibility for France as a destination. In 2025, we will continue to deliver on our strategic roadmap and keep transformation as our number one priority. In this context, we remain confident in achieving our medium-term ambition with a disciplined approach to capital allocation and cost efficiency.”

Things are not as rosy at KLM

Drilling down into the KLM results, however, the position is not as positive as that at the Group level. In 2024, operating revenues decreased by €234 million ($257m) to €416 million ($457m). Despite a revenue growth of 5.4%, profitability came under pressure due to rising costs of equipment, personnel, and airport fees. However, with its program of cost-cutting first announced in October 2024, KLM aims to save €450 million ($495m) in 2025 and is forecasting to achieve an 8% profit margin in the period 2026-2028, fuelled, according to the airline, by the execution of its ambitious fleet renewal plan and future strategy which includes adding more services to more destinations. 

“Our results for 2024 show two different sides,” said Marjan Rintel, KLM CEO. “On one hand, we are still not operating at 100% of our flight capacity, and costs continue to rise sharply. As a result, we run the risk of not earning enough to keep investing in our future, although I’m confident that our plans will help us to improve our operations and finances for the long term.”

Markus Mainka / Shutterstock“At the same time, 2024 also brought some good news and progress. We saw growing customer demand for flight tickets, achieved operational improvements, welcomed the first Airbus A321neo, and successfully completed the conversion of our Premium Comfort Class (premium economy).”

Ending its statement on a more positive note, the airline added, “More than three-quarters of Dutch people have a positive view of aviation, and the demand for flying continues to rise. This is reflected in the numbers for both KLM and Transavia. In 2024, KLM welcomed 33 million passengers on board and Transavia around 9.5 million. KLM also transported 434,000 tons of cargo, announced seven new destinations, and added nine new aircraft to its fleet.” 

RELATED

KLM to offer 4% more capacity in 2025 as airline reveals full summer schedule  

The post Air France-KLM Group reports revenues up 4.8% in 2024 despite cost headwinds   appeared first on AeroTime.

Go to Source