Slides
Page 1
Q2 2026 RESULTS
Page 2
Q2 2026 HIGHLIGHTS Benjamin Smith – Chief Executive Officer Air France-KLM 2
Page 3
Q2 STRONG UNIT REVENUE MITIGATED CIRCA 85% OF THE FUEL HEADWIND • Group revenues up 9.9% year-on-year to €9.3bn, driven by growth across all businesses. • Unit revenue1 up 8.7% supported by ongoing premiumization, reduced industry capacity due to the Middle East conflict, increased company fares and strong Cargo demand. • Unit cost² growth is limited to +1.0%, of which +0.4% is driven by premiumization. • Adjusted operating profit at €484m, down €251m compared to last year, with an operating margin of 5.2%. • Fleet renewal, 38% share of new generation aircraft, up 8 points YoY. • Fuel price impact ➢ Q2 fuel cost increase amounted to USD 0.9bn, which is below the estimation of USD 1.1bn³. ➢ Circa 85% of the additional fuel costs recaptured via improved unit revenues in Q2. ➢ Fuel bill⁴ is expected at USD 8.9bn⁴ for FY 2026 which represents an increase of USD 2.0bn compared to FY 2025. This is USD 0.4bn below our FY estimate in Q1. 1) At constant currency 2) Against a constant fuel price, constant currency and excluding Emission Trading Scheme cost (ETS) 3) As presented during Q1 Results Presentation, using the fuel curve of 24 th of April 4) Based on the current hedges and forward curve of 27 July and subject to change given geopolitical uncertainty and excluding SAF costs. Passengers carried 28.3m +3.9% vs. Q2 2025 Cash at hand €10.3bn +€0.9bn vs. end June 2025 Recurring Adj. op. FCF €928m +€148m vs. H1 2025 3
Page 4
GLOBAL PREMIUM DEMAND DELIVERS STRONG REVENUE GAINS ACROSS KEY REGIONS 13% Revenue growth in Premium / Premium Comfort • Capacity increase +8% (mostly driven by KLM) • India +26%, Asia +21%; Americas +14% Passenger revenue share evolution H1 2024, H1 2025, H1 2026 11% Revenue growth in Business and La Première • India +21%, Asia +17%, US +14% • +25% La Première revenue vs. +12% extra seats • Most of the growth supported by high yield leisure (non-corporate index +12%) 6.6% 8.1% 8.6% 27.1% 28.6% 29.9% 2024 2025 2026 3pt 2pt 4
Page 5
WE CONTINUOUSLY ELEVATE THE CUSTOMER JOURNEY & BRAND PRESTIGE ACROSS THE GROUP 5
Page 6
OUR PAN EUROPEAN PLATFORM EXPANSION UNLOCKS OPPORTUNITIES AND DRIVES STRATEGY TO BECOME A GLOBAL CHAMPION 19.9% 60.5% Intention to increase our stake in SAS by the end of the year¹ up to 49.9% Submitted binding offer to acquire a strategic stake in TAP Air Portugal 1) Subject to EU approval 6
Page 7
Q2 2026 FINANCIAL RESULTS Steven Zaat – Chief Financial Officer Air France-KLM 7
Page 8
STRONG Q2 UNIT REVENUE OFFSET CIRCA 85% OF THE FUEL HEADWIND 8 Operating margin €9.3bn +9.9% YoY 5.2% -3.5pts YoYRevenues Adjusted operating profit evolution (in €m) Net result €190m -€459m4 YoY +8.7% YoY +1.0% YoY Unit revenue1 Unit cost² Operating Key Performance Indicators 735 484 672 Q2 2025 Unit revenue1 -80 Unit cost2 -804 Fuel price3 -38 Currency & other Q2 2026 -251m 1) Unit revenue at constant currency 2) Unit cost at constant fuel price, constant currency and excluding ETS 3) Including ETS cost (-€26m) 4) Impacted by a significant positive movement in Q2 2025, due to weakening of USD
Page 9
Air France-KLM passenger network + cargo = network 1) Capacity is defined as Available Seat Kilometers (ASK), except for Network Cargo capacity which is Available Ton Kilometers ( ATK). Group capacity is defined as Passenger ASK (Network Passenger ASK + Transavia ASK) 2) Unit revenues = revenue per ASK, Cargo unit revenues = Cargo revenue per ATK, Group unit revenue = (Network traffic revenues + Transavia traffic revenues) / (Network Passenger ASK + Transavia ASK). 3) Revenue is the third-party revenues, margin calculated on the total revenues 9 GROUP PERFORMANCE DRIVEN BY STRONG NETWORK AND CARGO UNIT REVENUE 3 Q2 2026 vs Q2 2025 Capacity 1 Unit Revenue 2 Constant Curr. Revenues (€ m) Change Adjusted Operating Profit/Loss (€ m) Change Operating margin Change +1.7% +8.7% 6,895 +8.2% +2.9% +26.7% 711 +25.7% Transavia +7.3% +1.6% 1,057 +11.7% -35 -52m -3.3% -5.2 pt Maintenance 615 +9.5% 61 +1m 4.3% 0.0 pt Group +2.6% +8.7% 9,277 +9.9% 484 -251m 5.2% -3.5 pt Network 466 -204m 6.1% -3.5 pt
Page 10
FLYING BLUE MARGIN ACCELERATES WHILE AIRLINE MARGINS ARE IMPACTED BY HIGHER FUEL PRICES NB: Sum of individual airline results do not add up to Air France -KLM total due to intercompany eliminations at Group level 1) Flying Blue Miles total gross turnover, including third party airline and non -airline partners revenue 10 Q2 2026 vs Q2 2025 1 • Air France: Higher fuel price is impacting the adjusted operating profit, partly offset by higher passenger and cargo unit revenue. • KLM: Adjusted operating profit remained broadly stable, despite a higher fuel price. Thanks to improved passenger network and cargo unit revenues, and unit cost control driven by Back on Track program. • Flying Blue: Third-party revenue rose for a third consecutive quarter, lifting operating margin to 28.0% despite a weaker USD. This durable partner activity also generated incremental revenue for the airlines and supported yield optimization across Air France–KLM. Capacity change Revenues (€ m) Change YoY Adjusted Operating Profit (€ m) Change YoY Operating margin Change YoY +0.5% 5,516 +6.5% 225 -290 4.1% -5.9 pt +5.7% 3,867 +13.8% 176 +3 4.5% -0.5 pt 325 +42.5% 91 +34 28.0% +3.0 pt +2.6% 9,277 +9.9% 484 -251 5.2% -3.5 pt
Page 11
4.5% -0.3 pt 5.5% 2.6% -0.1 pt 7.6% 3.0% 1.6 pt 11.2% 1.0% -0.8 pt 6.1% 7.6% 0.0 pt 9.1% 7.4% -1.7 pt 8.9% 7.3% 1.7 pt -0.2% 2.0% -0.9 pt 11.3% -4.0% 0.2 pt 20.3% -9.8% 1.1 pt 11.1% 3.9% -2.2 pt 8.6% 1) Air France-KLM Passenger network, excluding Transavia First & Business1 Economy1 North America Asia & Middle EastCaribbean & Indian Ocean Africa Total Q2 2026 vs Q2 2025 86% 89% 87% 0.3% 1.1 pt 3.6% Total Long-Haul 86% Short & Medium-Haul1 Transavia 91% 90% 83% 88% 83% 88% xx% Actual Load factorASK Yield ex currencyLoad factor change PREMIUM AND LONG-HAUL DEMAND CONTINUED TO SUPPORT STRONG YIELDS, MAINLY ASIA Premium Economy1 83% 89% Latin America 11
Page 12
0.9% 1.0% 0.4% Labour price -0.3% Productivity Premiumization Unit cost In % year-over-year UNIT COST DEVELOPMENT IN LINE WITH FULL YEAR GUIDANCE Q2 Unit cost¹ per ASK evolution 1) At constant fuel price including SAF, constant currency and excluding Emission Trading Scheme cost (ETS) against 2025 2) Including additional leases for engines & rotables • Productivity impacted by lower ASK’s, hence not fully compensating labor price increase. • Improved operations offset by higher maintenance due to supply chain: • -0.4% Fuel efficiency driven by fleet renewal and stabilized operations • -0.6% Less wet leases reducing fleet cost • +1.1% Maintenance costs² Unit cost up due to Premiumization of the cabin driving unit revenue gains 12
Page 13
8,392 8,376 604-1,173 440 113 1,649 1,173 928 969 619 -1,445 -864 Net debt at 31 December 2025 Operating free cash flow New and modified lease debt Interest paid and received³ Currency & other Net debt at 30 June 2026 13 Cash flow before change in working capital Change in working capital Net investments Operating free cash flow Payment of lease debt and net interest Exceptionals² Recurring adjusted operating free cash flow 1) IFRS18 adjusted, impact mainly on reclassification currency impact 2) Deferred social charges & wage taxes inherited from the pandemic 3) Including hybrid coupons 4) Net debt/Adjusted EBITDA Adjusted operating free cash flow = recurring adjusted operating free cash flow corrected for exceptionals H1 2026 Free cash flow evolution (In €m) H1 2026 Net debt evolution (In €m) Exceptionals corresponding to: - €251m deferred social charges and wage taxes (impacting working capital) - €368m of cargo claim paid in March (impacting cash flow before change in working capital) Leverage ratio⁴: 1.6x end June 2026, down -0.1x vs December 2025 H1 2025: €780m¹ H1 2025: €1,353m¹ POSITIVE CASH FLOW DEVELOPMENT AND STABLE NET DEBT
Page 14
Reduce the stock of subordinated instruments Net result generation to further strengthen the balance sheet FURTHER STRENGTHENING THE BALANCE SHEET STRONG LIQUIDITY AND FUNDING ACCESS €10.3bn¹ Cash at hand Well above targeted liquidity level between €6bn to €8bn €1.15bn Senior bonds issued in 2026 €650m at 3.875% €500m at 4.25%² €1.0bn New multi-purpose credit facility (undrawn) To refinance existing financial instruments including instruments associated with the group’s M&A activity BALANCE SHEET SIMPLIFICATION c.€1.6bn of instruments redeemed in 2026 April €500m AF-KLM Sustainability-Linked Bond (coupon 7.25%) May c.€300m KLM Perpetual (coupon 5.75%, CHF) May €282m AF-KLM Senior Notes (coupon 3.875%) July €500m Air France Hybrid with Apollo (coupon 6.9%) CREDIT RATINGS Fitch BBB- Stable outlook S&P BB+ Ratings affirmed: 13 May (Fitch) 22 June (S&P) Stable outlook 1) Cash at hand is calculated as net cash €6.8bn + undrawn credit lines €3.5bn 2) A new 5-year €500m bond was issued on 1st of July (AFKL 4.25%, July 2031) and is not included in cash at hand 14
Page 15
OUTLOOK Steven Zaat – Chief Financial Officer Air France-KLM 15
Page 16
FY2026 FUEL OUTLOOK IMPROVED BY $0.4 BILLION SINCE APRIL FUEL BILL REMAINS $2.0 BILLION ABOVE FY2025 Based on forward curve on 27th July 2026. Jet fuel price including into plane cost, excluding SAF premium. 16 Market price Price after hedge Fuel bill after hedge excl SAF ($m) 6,900 ~8,900 FY 2025 FY 2027 40% hedged SAF premium cost (€m) ~ 230 ~ 250 Brent ($ per bbl) Jet fuel ($ per metric ton) Jet fuel ($ per metric ton) % of consumption already hedged Hedge result (in $ m) Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2026 YoY evolution ($m): +600 +500+900 68 78 97 84 81 85 792 866 1,470 1,243 1,212 1,205 808 773 1,209 1,039 1,053 1,024 69% 71% 71% 66% 61% 67% -138 186 565 478 343 1,572
Page 17
LATE BOOKING TREND AND SUCCESSFUL YIELD MANAGEMENT CONTINUE Snapshots of the 22nd of July 2025 and 2026 Long-Haul Short & Medium-Haul Forward booking load factor 2026Forward booking load factor 2025 Transavia 17 69% 71% 2025 2026 65% 63% 2025 2026 74% 72% 2025 2026 Q3
Page 18
18 FY 2026 vs 2025 Long Haul Circa +2% (Previously +2% to +4%) Short and Medium Haul Circa -1% (Previously Stable) Transavia Circa +8% (Previously +8% to +10%) Total +2% to +3% (Previously +2% to +4%) FY 2026 CAPACITY OUTLOOK: ACTIVELY MANAGED TO OPTIMIZE RETURNS IN A VOLATILE CONTEXT
Page 19
FY 2026 Group Capacity +2% to +3% vs. 2025 (Previously +2% to +4%) Unit cost1 0% to +2% Including 0.5% increase linked to cabin premiumization (Unchanged) Net Capex (c.80% fleet/fleet related) Below €3bn (Unchanged) Net Debt/Adjusted EBITDA 1.5x to 2.0x (Unchanged) 1) At constant fuel price including SAF, constant currency and excluding Emission Trading Scheme cost (ETS) against 2025 19 FY 2026 CAPACITY OUTLOOK REVISED, UNIT COST GUIDANCE UNCHANGED
Page 20
CONCLUDING REMARKS Benjamin Smith – Chief Executive Officer Air France-KLM 20
Page 21
21 CONCLUSION: REVENUE QUALITY AND DISCIPLINED COST CONTROL UNDERPIN RESILIENT RESULTS STRONG REVENUES DRIVEN BY ALL BUSINESSES COSTS WELL CONTROLLED WITHIN GUIDANCE FURTHER SIMPLIFIED BALANCE SHEET & STRONG CASH POSITION FY 2026 FINANCIAL OUTLOOK CONFIRMED, WITH AGILE CAPACITY MANAGEMENT
Page 22
APPENDIX 22
Page 23
23 • Dividends received: Previously presented in “revenues,” are now classified within the line “Foreign exchange gains (losses), on derivatives and other (investing)”. • Finance cost related to defined benefit pension obligations: Corresponds to the reclassification of the undiscounting pension provisions and retirements benefits within the financing section of the income statement. Previously recognized in the “staff costs” line, is now presented in the line “undiscounting of provisions”, within profit before tax. • Foreign exchange results and impacts on derivatives: Previously recognized in the line “other financial income and expenses,” are now allocated to the subtotal to which they relate, within the three distinct categories of the income statement: “Foreign exchange gains (losses) (operating) after hedging,” “Foreign exchange gains (losses), on derivatives and other (investing),” and “Foreign exchange gains (losses), on derivatives and other (financing)”. IMPLEMENTATION IFRS18 AS OF Q2 2026 In M€ YTD YTD (Y-1) Quarter Quarter (Y-1) Full Year 2025 CURRENT OPERATING INCOME (BEFORE IFRS 18) 448 409 476 736 2,004 Dividends Received 0 0 0 0 -1 Pension – Interest Cost 28 26 13 13 50 Realized foreign exchange gain (losses) - operating 2 -4 -5 -14 16 ADJUSTED OPERATING PROFIT (AFTER IFRS 18) 478 431 484 735 2,069
Page 24
H1 2026 BUSINESS HIGHLIGHTS 24 Operating margin €16.8bn +7.4% YoY 2.9% +0.1pt YoYRevenues Adjusted operating profit evolution (in €m) Net result €-61m -€462m4 YoY +6.3% YoY +0.8% YoY Unit revenue1 Unit cost² Operating Key Performance Indicators 431 478883 H1 2025 Unit revenue1 -112 Unit cost2 -720 Fuel price3 -4 Currency & other H1 2026 +47m 1) Unit revenue at constant currency 2) Unit cost at constant fuel price, constant currency and excluding ETS 3) Including ETS cost 4) Impacted by a significant positive movement in H1 2025 due to weakening of USD
Page 25
Air France-KLM passenger network + cargo = network 1) Capacity is defined as Available Seat Kilometers (ASK), except for Network Cargo capacity which is Available Ton Kilometers ( ATK). Group capacity is defined as Passenger ASK (Network Passenger ASK + Transavia ASK) 2) Unit revenues = revenue per ASK, Cargo unit revenues = Cargo revenue per ATK, Group unit revenue = (Network traffic revenues + Transavia traffic revenues) / (Network Passenger ASK + Transavia ASK). 3) Revenue is the third-party revenues, margin calculated on the total revenues 25 H1 2026 BUSINESS OVERVIEW H1 2026 vs H1 2025 3 Capacity (1) Unit Revenue (2) Constant Curr. Revenues (€ m) Change Adjusted Operating Profit/Loss (€ m) Change Operating margin Change +2.2% +7.0% 12,593 +6.8% +2.6% +12.6% 1,313 +10.5% Transavia +9.7% -0.7% 1,628 +10.6% -265 -84m -16.3% -4.0 pt Maintenance 1,224 +6.2% 120 -3m 4.3% -0.1 pt Group +3.3% +6.3% 16,756 +7.4% 478 +47m 2.9% +0.1 pt Network 629 +134m 4.5% +0.7 pt
Page 26
H1 2026 AIRLINES AND LOYALTY NB: Sum of individual airline results does not add up to Air France -KLM total due to intercompany eliminations at Group level 1) Flying Blue Miles total gross turnover, including third party airline and non -airline partners revenue 26 H1 2026 vs H1 2025 1 Capacity change Revenues (€ m) Change YoY Adjusted Operating Profit (€ m) Change YoY Operating margin Change YoY +2.2% 10,084 +5.8% 251 -103 2.5% -1.2 pt +4.8% 6,854 +8.0% 68 +92 1.0% +1.4 pt 583 +36.5% 169 +66 29.0% +4.9 pt +3.3% 16,756 +7.4% 478 +47 2.9% +0.1 pt
Page 27
Revenues and costs per currency FY 2025 REVENUES COSTS CURRENCY IMPACT ON OPERATING RESULT Currency impact on revenues and costs In € m Currency impact on revenues Currency impact on costs, including hedging XX Currency impact on operating result -56 30 70 US dollar Other currencies (mainly euro) 20 2060 US dollar (and related currencies) Other currencies Euro Q2 2026 -183 127 27
Page 28
DEBT REDEMPTION PROFILE AT 30 JUNE 2026 339 758 706 876 707 630 2,127 127 650 500 650 500 2026 2027 2028 2029 2030 2031 2032 and beyond Other long-term Debt: AF and KLM Secured Debt, mainly “Asset-backed” Debt reimbursement profile(1,2) In €m 1) Excluding operating lease debt payments, KLM uncalled perpetual debt, Air France perpetual quasi -equity, and accrued interest. 2) A new 5-year €500m bond was issued on 1st of July (AFKL 4.25%, July 2031), which is not included in the graph 3) A 0.375% step-up on the coupons to be paid on 31 May 2027 and on 31 May 2028 Bonds issued by Air France-KLM December 2026: AFKL 4.35% $145m Sustainability-Linked Bonds May 2028: 8.125%³ (€500m) May 2029: AFKL 4.625% (€650m) August 2030: AFKL 3.75% (€500m) January 2031: AFKL 3.875% (€650m) 28
Page 29
DISCLAIMER 29 Certain information included in this presentation are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and future business strategies and the environment in which Air France-KLM operates, and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements, or industry results or other events, to be materially different from those expressed or implied by these forward-looking statements. Forward-looking statements speak only as of the date of this presentation and Air France-KLM expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements included in this presentation to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based
Page 30
Investor Relations department Michiel Klinkers Michiel.Klinkers@airfranceklm.com Loulou de Winter Loulou-de.Winter@airfranceklm.com