The Air France-KLM group has announced that it foresees a further increase in profitability during the 2026-28 period, with an operating margin exceeding 8%. This projection comes as the Franco-Dutch carrier group anticipates a notable improvement in its operating performance over the next five years, resulting in a 2 billion euros ($2.17 billion) increase across all its business segments. A crucial factor contributing to this growth is the accelerated implementation of its transformation program and the ensuing cost savings.
As part of its strategic plan, the company is also focused on reducing unit costs and achieving sustained enhancement in cash generation. To facilitate this, Air France-KLM estimates that net capital expenditures will range between EUR3.0 billion and EUR3.5 billion per year from 2024 to 2026, rising to EUR3.5 billion and EUR3.8 billion annually in 2027 and 2028 respectively. These investments will primarily support fleet renewal and maintenance activities.
Moreover, the company has reaffirmed its midterm targets for the period between 2024 and 2026 and is optimistic about capacity levels returning to those seen in 2019 by 2024. Additionally, Air France-KLM predicts a year-on-year decrease in unit costs during this timeframe.
