In a notable shift in its fleet strategy, Air France-KLM has revised its order for Airbus A350F freighters, reducing the total from eight to six units. This adjustment, announced in early March 2025, reflects a pragmatic response to evolving market conditions and production delays at Airbus. Originally, the airline group had planned for Air France and its Dutch cargo subsidiary, Martinair (which operates under the KLM banner), to each receive four of these advanced freighters. Under the updated plan, both entities will now take delivery of three A350Fs each. The decision to trim the order comes amid Airbus’s acknowledgment of setbacks in the A350F program, with initial deliveries now pushed back from 2026 due to supply chain challenges, notably involving fuselage supplier Spirit AeroSystems. Rather than simply canceling the two units outright, Air France- KLM opted to convert them into orders for A350-900 passenger jets, which can be delivered sooner, allowing the group to bolster its passenger operations while maintaining flexibility in its cargo strategy.
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This fleet adjustment coincides with the release of Air France- KLM’s financial results for the 2024 fiscal year, which paint a picture of resilience despite industry headwinds. The group reported an operating profit of €1.6 billion, underpinned by a 4.8% increase in total revenue to €31.5 billion compared to 2023. This profit, while robust, comes with an operating margin of 5.1%, reflecting the pressures of rising costs in fuel, personnel, and equipment. The cargo division, a critical component of the group’s operations, showed mixed performance: cargo volumes grew by 4.1% year-on-year, and fourth-quarter cargo revenue rose 11% to €722 million, driven by a 6.8% increase in airfreight traffic. However, annual freight revenue dipped by 3.9%, signaling softer demand or pricing challenges in the broader cargo market. These figures highlight why Air France- KLM might be recalibrating its freighter investments, balancing the need for dedicated cargo capacity with the versatility of belly cargo in its passenger fleet.
Beyond the A350F adjustment, Air France- KLM is pressing forward with an ambitious fleet modernization effort. In 2024, the group integrated 41 new aircraft, including eight Airbus A350s, ten A321neos, nine A320neos, nine A220s, four Embraer 195-E2s, and one Boeing 787-10. This influx has lifted the share of new-generation aircraft in its fleet to 27%, with a target of 80% by 2030. To make room for these efficient models, older aircraft—such as two Airbus A380s, three A330-200s, and several Boeing 737s—were phased out, aligning with both operational efficiency and sustainability goals. On the sustainability front, the group increased its use of Sustainable Aviation Fuel (SAF to 1.25% of total fuel consumption in 2024, a 13.6% rise from the previous year, and secured a long-term deal with TotalEnergies for up to 1.5 million tons of SAF over the next decade.
Financially, Air France- KLM is navigating a delicate balance. Unit costs are expected to edge upward, and capital expenditures for 2025 are projected to range between €3.2 billion and €3.4 billion as the group continues investing in its fleet and infrastructure. Nevertheless, it aims to keep its leverage ratio between 1.5x and 2.0x, ensuring stability while pursuing growth. The decision to scale back the A350F order, paired with a solid €1.6 billion profit, underscores Air France-KLM’s strategic adaptability in a turbulent aviation landscape, positioning it to meet both current demands and future ambitions.