Air France-KLM and Deutsche Lufthansa AG promised a reversal of fortunes for 2025 after a year marked by travel disruptions, delivery delays and weak demand, igniting shares of both airlines as investors look to shake off disappointing returns.

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.

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 reported better than expected annual results on Thursday, citing reduced costs and a strong fourth quarter performance while its Dutch unit flagged ongoing pressures on profitability. European airlines experienced strong demand in 2024 but struggled to shake off the impact of labour strikes,

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.