Air France-KLM reported better than expected annual results that sent its shares to a five-year high on Thursday after the airline benefitted from tight cost management and stronger pricing in the fourth quarter.

KLM’s revenues in 2024 were also supported by increased demand for cargo goods shipments, boosted by e-commerce and shipping disruptions. View on euronews

"In the fourth quarter of 2024, Air France-KLM delivered a particularly strong finish, concluding a year shaped by both operational and external challenges," Chief Executive Ben Smith said in a statement.

Shares soared in early European trading after the carrier group posted better-than-expected profit driven by strong passenger and cargo pricing.

Air France-KLM Group said it aims to lift seat capacity between 4-5% this year and improve operating profit by at least €300 million ($323 million) across the business, as it focuses on more profitable routes and tackles an efficiency drive at its KLM subsidiary.

French airline group Air France-KLM narrowed its losses in the fourth quarter as it achieved higher revenues, the firm reported on Thursday. Looking ahead to fiscal 2025, the company expects capacity to increase by 4% to 5% and unit cost to rise by a low single-digit figure compared to 2024.