Air France-KLM Reports Strong Q4 Profit, Shares Surge 16%

Air France-KLM reported a significant increase in its fourth-quarter operating profit, reaching 396 million euros ($427.3 million), nearly double analyst expectations of 205 million euros, driven by strong passenger demand and effective cost management. Despite ongoing pressures from labor strikes and rising costs, the company anticipates a further improvement in earnings before interest and taxes by at least 300 million euros in 2025. CEO Ben Smith noted that the airline faced a challenging year but ended strongly, with a total operating profit of 1.73 billion euros for the full year, surpassing analyst forecasts. However, KLM described its annual performance as disappointing, citing persistent cost pressures and a decrease in operating results. The airline's shares rose significantly following the earnings announcement, reflecting positive market sentiment about its outlook. Analysts predict that consensus estimates for the company may increase by at least 7% due to the strong guidance provided.