The Air France-KLM Group reported an operating result of €1.601 billion for the 2024 fiscal year, with an operating margin of 5.1%, according to the company’s annual report. Revenue reached €31.5 billion, marking a 4.8% increase compared to the previous year, driven by a 3.6% capacity growth and higher third-party maintenance revenue.
However, the group's net profit for 2024 dropped by 66% to €317 million, which the company attributes to the negative impact of the Paris 2024 Olympics, affecting the normal flow of tourists to the French capital during the summer peak season.
In the fourth quarter, the company recorded an operating result of €396 million, an improvement of €453 million compared to the same period in 2023. The company attributes this growth to a 4.4% increase in unit revenue and lower fuel costs.
"In the fourth quarter of 2024, Air France-KLM achieved a particularly strong close in a year marked by operational and external challenges," said Benjamin Smith, CEO of the Group.
Passenger Growth and Operations Expansion
The group transported 97.9 million passengers in 2024, a 4.7% increase from the previous year. Available seat kilometers (ASK) grew by 3.6%, while the load factor reached 87.8%, up 0.5 percentage points.
In the cargo segment, the company reported a 4.2% growth in revenue-ton-kilometers (RTK) for the year. In the fourth quarter, unit revenue for cargo increased 20.9% year-over-year, driven by a strong market, particularly in Asia.
Outlook for 2025
For 2025, Air France-KLM expects a capacity increase of 4-5% compared to 2024. The company also projects a low single-digit increase in unit costs and capital investment between €3.2 billion and €3.4 billion. The net debt/EBITDA ratio is expected to be between 1.5x and 2.0x, aligning with the medium-term target.
The strategic plan for 2026-2028 aims for an operating margin above 8% and significantly positive adjusted free cash flow.
By the end of 2024, 27% of the group's fleet consisted of new-generation aircraft, with a goal of 80% by 2030. Last year, the airline added 41 new aircraft, including eight Airbus A350s, ten A321neos, and four Embraer E195-E2s, while retiring 18 older models, such as the A330-200 and Boeing 737-700.
Regarding sustainable aviation fuel (SAF), the company incorporated 103,000 tons in 2024, accounting for 1.25% of total fuel consumption, a 13.6% increase from 2023. Additionally, Air France-KLM signed an agreement with TotalEnergies to supply up to 1.5 million tons of SAF until 2035.
Transformation Strategy and Cost Management
In 2024, Air France-KLM implemented cost optimization and operational efficiency strategies. KLM launched the "Back on Track" program, aiming for a €450 million structural improvement in EBIT. As part of this initiative, in January 2025, the Dutch airline announced a reduction of 250 non-operational jobs.
Despite these measures, the group’s unit costs rose by 3.2% in 2024, driven by higher labor costs and cabin premiumization. In 2025, the company anticipates a smaller increase in unit costs, maintaining a focus on operational efficiency.
Air France-KLM emphasized its strong financial position, allowing it to fully repay €515.2 million in remaining bonds maturing in January 2025 using its own liquidity.
Download document: Annual Report 2024 - Air France-KLM Group
AUTOR
Contando la aviación desde marzo del año 2000. Fundador y Managing Editor de Aviacionline.
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