Air France-KLM has cut its capacity growth forecast for 2026 to between 2% and 4%, down from 3% to 5%. This reduction comes as the airline expects its fuel bill to increase by $2.4 billion in 2026, largely due to rising fuel costs stemming from geopolitical tensions.
The total fuel bill for Air France-KLM is projected at $9.3 billion for 2026, marking a $2.4 billion rise compared to 2025. Concerns about the blockage of the Strait of Hormuz have pushed Brent crude prices to a four-year high of $126 per barrel, significantly impacting the airline industry.
In the first quarter of 2026, Air France-KLM reported an operating loss of €27 million, which was better than the €389 million loss projected by analysts. KLM’s Back on Track improvement program helped generate €159 million in savings during this period.
KLM CEO Marjan Rintel stated that ongoing geopolitical uncertainty and sharply increased fuel prices will pressure results starting from the second quarter. She emphasized that KLM cannot fully pass on these high fuel prices to customers, which will further impact profitability.
Ben Smith, CEO of Air France-KLM, described the operating environment as “uncertain.” He acknowledged the challenges posed by rising fuel prices and their effects on capacity growth and overall financial performance.
Looking ahead, analysts anticipate continued volatility in fuel prices due to geopolitical factors. The airline must navigate these challenges while implementing cost control measures to mitigate potential operating losses.
