Air France-KLM adjusted its yearly capacity growth forecast downward on Thursday, citing rising jet fuel prices caused by the war in Iran, while Q1 results exceeded expectations for net profit.

Shares of the French carrier surged by 1.5% at 11:55 Moscow time.

The Franco-Dutch carrier now anticipates capacity growth in the range of 2% to 4% this year compared to the previous forecast of 3%-5%. The company expects fuel expenses to hit $9.3 billion in 2026, which is $2.4 billion more than in 2025.

"Even though the rise in fuel prices hasn't yet reflected in the results we're presenting today, it's expected to put pressure on upcoming quarters," said CEO Benjamin Smith.

European airlines are sounding the alarm over the cost of aviation fuel, which has more than doubled following the closure of the Hormuz Strait due to strikes by the US and Israel against Iran.

For the first quarter, Air France-KLM reported revenue of €7.48 billion, in line with expectations and 4.4% higher compared to the same period last year.

The group recorded an operating loss of €27 million with an operating margin of -0.4%, which is significantly better than the operating loss of €351 million projected by analysts. The net loss stood at €252 million, remaining virtually unchanged from last year.

Passenger numbers grew by 2.3% to 22.3 million, with capacity and passenger traffic increasing by 4% and 4.4%, respectively. The load factor slightly increased from 86% to 86.3%.

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