Air France-KLM cuts 2026 capacity outlook on rising jet fuel costs

30th Apr 2026 11:06

(Sharecast News) - Air France-KLM cut its capacity forecast for this year on Thursday as it pointed to rising jet fuel costs due to the Iran war.

The airline now expects 2026 capacity to rise by 2% to 4%, down from previous guidance for growth of between 3% and 5%, with the fuel bill expected to increase by $2.4bn from 2025 to $9.3bn.

In the second quarter, the company expects to spend $1.1bn on fuel.

The downgrade came as Air France said first-quarter operating losses came in at €27m, a €301m year-on-year improvement. Group revenues were up 4.4% on the year to €7.5bn, driven by passenger network.

Chief executive Benjamin Smith said: "While fuel price increases are not yet reflected in the results we present today, they are expected to weigh on the coming quarters.

"We've already introduced measures to support our financial performance through disciplined cost management and continue to monitor the situation closely. While the environment remains uncertain, we remain committed to the execution of our strategy."

At 1100 BST, the shares were up 0.6% at €8.78.