Air France-KLM beats quarterly profit expectations but trims capacity forecasts

Air France-KLM cut its full-year capacity guidance on Thursday, even as it beat second-quarter profit expectations thanks to stronger premium and long-haul demand. The Franco-Dutch carrier reported adjusted operating profit of €484 million ($552.5 million) for the quarter, down from €736 million a year earlier but above the €327 million consensus. Management said steady premium travel demand in Asian and North American markets helped offset wider industry pressure from elevated jet-fuel costs and reduced capacity tied to the Iran war. KLM warned improvements were not enough to strengthen its financial foundations, while Air France-KLM now expects a 1% drop in short/medium-haul flights and a 2%–3% group increase. The airline also trimmed its 2026 fuel-bill forecast by 4% to $8.9 billion.