United Airlines allows flight attendants to drink in specific deadheading cases, while Air France-KLM revises its fleet plans and boosts sustainability in 2024.
In a move that sets it apart from other major U.S. airlines, United Airlines (UA) remains the only carrier to permit flight attendants to consume alcohol while technically on duty—under highly specific conditions. This policy applies solely to deadheading crew members—those traveling as passengers on their final segment of the day with no further responsibilities.
While most airlines enforce strict zero-tolerance policies regarding alcohol consumption on duty, United’s stance acknowledges the unique nature of deadheading. By allowing a controlled level of personal discretion, the airline offers a rare perk for crew members finishing their shifts. However, this exception remains limited to situations where the flight attendants have no further work obligations, ensuring it does not interfere with operational safety or service standards.
Air France-KLM Revises Cargo Aircraft Order Amid Changing Market Conditions
As part of its evolving cargo strategy, Air France-KLM has trimmed its initial order for Airbus A350F freighters, now opting for three aircraft each for Air France (AF) and Martinair (MP), KLM’s cargo subsidiary, instead of four per carrier as originally planned.
The decision follows a 4.1% year-on-year rise in cargo volumes in 2024, contrasting with a 3.9% drop in freight revenue compared to 2023. While demand for cargo remains strong, shifting market dynamics and cost considerations have led the airline to recalibrate its fleet expansion plans.
Despite the reduction, the airline group emphasized that this move does not indicate a shift away from its hybrid cargo model, which combines dedicated freighters with belly cargo capacity on passenger aircraft. This flexible approach allows the airline to maximize cargo revenue while optimizing operational efficiency.
Air France-KLM’s 2024 Financial Performance Reflects Resilience and Growth
Despite challenges in the cargo sector, Air France-KLM delivered strong financial results in 2024, reporting an operating profit of €1.6 billion and an operating margin of 5.1%. Group revenues climbed to €31.5 billion, reflecting a 4.8% increase from 2023, showcasing the airline’s resilience in a post-pandemic landscape.
Operating cash flow stood at €446 million, overcoming pandemic-related financial headwinds. Meanwhile, adjusted recurring operating free cash flow surged by €317 million, reaching €271 million, underscoring the airline’s improved cash generation capabilities.
However, net debt rose to €7.4 billion, largely due to new lease arrangements linked to fleet modernization and aircraft delivery delays. Despite this, the group remains committed to maintaining a healthy leverage ratio of 1.5x to 2.0x, ensuring long-term financial stability while continuing to invest in strategic growth.
Fleet Renewal Gains Momentum as Air France-KLM Eyes a Greener Future
Air France-KLM continued to modernize its fleet aggressively in 2024, with next-generation aircraft comprising 27% of its total fleet by year-end. The airline remains steadfast in its goal of raising this share to 80% by 2030, a crucial step toward reducing emissions and improving fuel efficiency.
Throughout the year, the airline introduced a diverse mix of new aircraft, including:
- 8 Airbus A350s
- 10 Airbus A321neos
- 9 Airbus A320neos
- 9 Airbus A220s
- 4 Embraer 195-E2s
- 1 Boeing 787-10
At the same time, older, less fuel-efficient aircraft were retired, with the phase-out of:
- 2 Airbus A380s
- 3 Airbus A330-200s
- 2 Boeing 737-800s
- 4 Boeing 737-700s
This transition underscores Air France-KLM’s commitment to operational efficiency, cost reduction, and environmental responsibility—key pillars of its long-term sustainability plan.
Pioneering Sustainability with a Focus on Sustainable Aviation Fuel (SAF)
In its ongoing quest to cut carbon emissions and lead the industry in green aviation, Air France-KLM significantly increased its reliance on Sustainable Aviation Fuel (SAF) in 2024. SAF accounted for 1.25% of total fuel consumption, marking a 13.6% rise from the previous year.
To support this initiative, the airline entered a long-term agreement with TotalEnergies, securing up to 1.5 million tons of SAF over the next decade. This strategic partnership ensures a stable supply of alternative fuel, reinforcing the airline’s commitment to reducing its carbon footprint while balancing economic and environmental priorities.
Additionally, the group improved its greenhouse gas emissions intensity, achieving a 0.9% year-on-year reduction. These sustainability efforts align with the European Union’s ambitious carbon neutrality targets, further positioning Air France-KLM as a leader in eco-conscious aviation.
Looking Ahead to 2025: Expansion, Challenges, and Financial Stability
With a strong foundation in place, Air France-KLM projects a 4-5% increase in capacity for 2025, reflecting growing passenger demand. However, the airline anticipates a slight rise in unit costs, attributed to inflationary pressures and continued investments in its fleet modernization program.
Capital expenditures are projected to range between €3.2 billion and €3.4 billion, highlighting the group’s ongoing commitment to strategic investments and sustainable growth. Despite rising costs, Air France-KLM remains focused on maintaining a stable leverage ratio within the targeted 1.5x to 2.0x range, ensuring financial resilience while adapting to evolving market conditions.
As the airline moves into 2025, its multi-pronged strategy—centered on fleet renewal, sustainability, and operational efficiency—will play a crucial role in shaping its competitive edge. By balancing profitability with environmental responsibility, Air France-KLM continues to position itself for long-term success in an increasingly complex global aviation landscape.
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