Air France-KLM shares surged more than 11% in Thursday morning trading after the airline group reported stronger-than-expected third-quarter operating earnings, making it one of the leading gainers in European markets.
The Franco-Dutch group posted adjusted operating profit of €1.346 billion, an increase of €126 million from a year earlier. Revenue rose 7.6% to €9.916 billion, while its operating margin reached 13.6%, according to the company’s results announcement.
The earnings comfortably exceeded the roughly €1.1 billion anticipated by analysts. Strong demand for direct services to India and Asia, alongside the expansion of premium travel offerings, helped support the performance, Reuters reported.
Air France-KLM carried approximately 29.7 million passengers during the quarter, up 1.8% year on year. Revenue growth more than offset higher fuel expenses, while disciplined cost management kept unit costs broadly stable. The company also reported strong cargo unit revenue growth, supported by improved demand and pricing.
Despite the earnings beat, the group adjusted its full-year outlook. It now expects capacity growth of 2%, compared with its previous forecast of 2%–3%, and raised its projected annual fuel bill to $9.2 billion from $8.9 billion.
The results highlight the group’s ability to generate stronger earnings despite elevated fuel costs. However, the revised forecasts show that operating expenses and capacity constraints remain challenges as it approaches the end of the year.
