Air France-KLM is expanding its AI, cloud and digital transformation program as a core pillar of its long-term “2028 ambitions,” using advanced analytics, generative AI and next-generation retail platforms to modernize operations, boost premium revenue and accelerate direct digital sales.
Generative AI becomes central to airline operations
Air France-KLM now has more than 80 generative AI projects in development, ranging from proof-of-concept to full deployment, signaling a broad shift toward AI-driven aviation operations.
AI is already embedded across core workflows:
Predictive maintenance and logistics planning
Forecasting baggage and meal volumes per flight
Optimizing onboard water weight to reduce fuel burn
AI-powered eco-piloting to improve flight trajectories and cut emissions
These initiatives aim to reduce operational costs, improve punctuality and support sustainability targets through data-driven decision-making.
AI is also transforming the customer journey. Multilingual chatbots and real-time personalization tools now support travelers across booking, travel and post-flight service, enabling automated support and targeted offers.
“We advanced our premiumization strategy through enhanced customer experiences across airlines,” Benjamin Smith, Group CEO of Air France-KLM, said in the earnings report.
Cloud-first infrastructure and private GenAI platform
The airline group is migrating all operational and customer data to secure cloud environments supported by a private generative AI platform designed to meet ethical and regulatory requirements, including compliance with Europe’s AI Act.
A strategic partnership with Google Cloud is accelerating AI innovation, particularly in operational optimization and large-scale data analytics.
This cloud-first approach complements a major IT simplification effort. In 2025, the group retired more than 200 legacy applications, modernizing its technology stack to enable faster innovation and lower operating costs.
CRM360 and digital cargo power data-driven airline retail
The global rollout of the CRM360 platform marks a major milestone in Air France-KLM’s digital transformation. The system delivers a unified customer view and serves as the foundation for AI-powered personalization, predictive support and automated service recovery.
Digital adoption is equally strong in cargo operations, where more than 90 percent of bookings now take place through digital channels, primarily the myCargo portal. This shift highlights the growing role of automation and data analytics in global logistics.
Digital distribution and ancillary growth accelerate
The airline continues to shift toward direct digital sales channels. Direct online revenue increased by 9 percent in 2025, improving distribution efficiency and reducing reliance on third-party intermediaries.
Personalized digital offerings are driving strong ancillary growth. Ancillary revenue rose 23 percent year on year to €2.1 billion, following a 26 percent increase in 2024. The performance underscores how AI-driven retailing is reshaping airline revenue models beyond ticket sales.
Connectivity upgrades also support the digital-first strategy. KLM Royal Dutch Airlines became one of the first European airlines to introduce free onboard internet on European routes, while both KLM and Air France are expanding high-speed WiFi globally.
Record results support tech-led premium strategy
Strong financial performance provides momentum for continued investment:
Revenue reached a record €33 billion, up 4.9 percent year on year
Operating result rose to €2.0 billion, improving by €400 million
Passenger numbers surpassed 100 million, reaching 103 million travelers
Premiumization remains a key growth driver. Premium cabins now generate 28.1 percent of total revenue, rising to more than 36 percent when Premium Economy is included.
Fleet modernization is another strategic priority, with next-generation aircraft now representing more than 35 percent of the fleet, supporting both sustainability and cost efficiency.
Operational efficiency and digital engineering growth
The “Back on Track” efficiency program at KLM is delivering unit cost reductions, helping offset a €250 million impact from tariff increases at Schiphol Airport.
The engineering and maintenance division secured more than 30 new contracts in 2025, bringing its order book to €10.7 billion and strengthening its global MRO leadership.
Amadeus partnership advances airline retail transformation
Air France-KLM has partnered with Amadeus IT Group to deploy the Nevio program, a next-generation airline retailing and order management platform designed to modernize distribution and enable more personalized travel offers.
AI, premiumization and digital retail define the 2028 roadmap
By combining generative AI, cloud migration, IT simplification and advanced retailing, Air France-KLM is building a data-driven airline model designed to deliver higher efficiency, stronger customer experience and diversified revenue growth over the coming years.
RAJANI BABURAJAN
