Air France-KLM cuts 2026 capacity growth forecast amid rising fuel cost

Air France-KLM reduced (30-Jul-2026) its 2026 capacity growth forecast to 2%-3%, down from 2%-4%, as rising fuel prices linked to the Middle East conflict impacted its profitability in 1H2026. The group expects its fuel bill to reach USD8.9 billion in 2026, which is USD2 billion more than in 2025. CFO Steven Zaat stated: "We don't hedge any further for 2026. We are already at 67% and currently at 40% for 2027". As previously reported by CAPA, Air France-KLM submitted a binding offer for up to a 49.9% stake in TAP Air Portugal and is interested in increasing its stake in SAS. When asked if Air France-KLM was also interested in easyJet, CEO Benjamin Smith said: "There are some interesting assets they have, of course, for any airline. But today, it's not something that we are studying or looking at extensively". [more - Aviation Week]