Air France-KLM (EU:AF) lowered its full-year capacity growth forecast on Thursday, pointing to sharply higher jet fuel prices linked to the Iran conflict, while delivering first-quarter earnings that exceeded expectations at the operating level.
Shares of the airline group gained 1.5% by 08:55 GMT.
The Franco-Dutch carrier now expects capacity to expand by 2% to 4% in 2026, compared with its earlier guidance of 3% to 5%. It also projected its fuel expenses to reach $9.3 billion this year, representing a $2.4 billion increase from 2025 levels.
“While fuel price increases are not yet reflected in the results we present today, they are expected to weigh on the coming quarters,” chief executive Benjamin Smith said.
Airlines across Europe have warned about rising jet fuel costs, which have more than doubled since shipping through the Strait of Hormuz was disrupted following U.S. and Israeli strikes on Iran.
For the first quarter, the group reported revenue of €7.48 billion, matching expectations and marking a 4.4% increase from a year earlier.
Air France-KLM posted an operating loss of €27 million, with an operating margin of -0.4%, a significant improvement compared with the €351 million loss analysts had anticipated. Net loss totaled €252 million, broadly unchanged from the same period last year.
Passenger numbers increased 2.3% to 22.3 million, while capacity rose 4% and traffic climbed 4.4%. The load factor improved slightly to 86.3%, up from 86%.
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