Air France-KLM reports profit growth amid KLM restructuring

Air France-KLM reported a strong third quarter for 2026, with adjusted operating profit rising to €1.35 billion, exceeding analyst expectations. The group saw revenue increase by 7.6% to €9.9 billion, driven by resilient passenger demand and a 21.9% surge in cargo revenue. However, the group raised its 2026 fuel cost forecast to $9.2 billion, citing geopolitical instability in the Middle East as a primary driver for rising energy prices.

As part of the group's performance, Dutch subsidiary KLM announced a major restructuring program to improve long-term profitability. The airline plans to reorganize approximately 5,000 positions through outsourcing, internal transfers to the parent company, and structural efficiency gains. These measures are expected to result in a net reduction of roughly 1,000 jobs. KLM aims to achieve an annual earnings improvement of €1 billion to fund fleet modernization, including the introduction of Embraer E195-E2 aircraft and the phase-out of older Boeing 737 and Embraer E190 models.

KLM CEO Marjan Rintel stated that the restructuring is necessary due to high fuel prices, global instability, and increasing pressure on the aviation sector, noting that the airline’s future is “not a given” without these changes.