French flag-carrier group Air France-KLM saw its stock tumble more than 12 per cent on 6 November after posting third-quarter results that missed analysts’ operating-profit forecasts and flagged persistent unit-cost pressure. The sell-off dragged the CAC 40 travel-and-leisure sub-index lower and reignited debate over whether higher ticket prices will persist into 2026.
Management blamed weaker trans-Atlantic yields, delayed deliveries of fuel-efficient A321XLR aircraft, and a €200 million jump in sustainable-aviation-fuel (SAF) surcharges set to take effect from January. CFO Steven Zaat warned that the carrier “cannot absorb additional SAF costs alone,” hinting at further fare increases for corporate contracts.
![Air France-KLM Share Slump Signals Cost Headwinds for Corporate Travel]()
Travel-procurement specialists note that Air France-KLM still controls more than 50 per cent of premium-class capacity ex-Paris; sustained price inflation could push French-based corporates to adjust policy caps, diversify routings via Iberia or Lufthansa, or accelerate virtual-meeting substitution.
The carrier nevertheless reaffirmed its 2025 net-debt reduction target and said it would finalise a joint-venture extension with Delta and Virgin Atlantic in Q1 2026, moves that could restore investor confidence. Mobility managers are advised to open 2026 fare negotiations early and model SAF surcharges in budget forecasts.
Management blamed weaker trans-Atlantic yields, delayed deliveries of fuel-efficient A321XLR aircraft, and a €200 million jump in sustainable-aviation-fuel (SAF) surcharges set to take effect from January. CFO Steven Zaat warned that the carrier “cannot absorb additional SAF costs alone,” hinting at further fare increases for corporate contracts.
Travel-procurement specialists note that Air France-KLM still controls more than 50 per cent of premium-class capacity ex-Paris; sustained price inflation could push French-based corporates to adjust policy caps, diversify routings via Iberia or Lufthansa, or accelerate virtual-meeting substitution.
The carrier nevertheless reaffirmed its 2025 net-debt reduction target and said it would finalise a joint-venture extension with Delta and Virgin Atlantic in Q1 2026, moves that could restore investor confidence. Mobility managers are advised to open 2026 fare negotiations early and model SAF surcharges in budget forecasts.
