DAVY VIEW

Air France reported a FY24 operating profit of €1,601m (consensus: €1,353m). The reported operating margin of 5.1% is down from 5.7% last year. Unit cost was up 3.2%, broadly in line with the previously guided +3% year-on-year (yoy). For Q1 2025, the group sees “yield compensating lower load factor (Easter shift) resulting in positive unit revenue development for Q1”. For FY25, the group expects at least €300m in EBIT improvement. We expect our FY25 operating profit forecast of €1.9bn to remain broadly unchanged. The company has reaffirmed its medium-term (2026-2028) operating margin target of >8%.