Air France-KLM to pay €368m related to Cargo final judgement

Rhea-AI Summary

Air France-KLM (OTC: AFLYY) will pay €368m in March 2026 following a final judgement by the Court of Justice of the European Union upholding prior rulings related to historic air cargo practices deemed anti-competitive.

The company had booked €366m of provisions; the full amount including interest will be settled in March 2026. Air France-KLM reiterated its commitment to competition compliance and to maintaining its prevention and compliance systems.

Positive

• Provisioned €366m ahead of payment
• Payment scheduled for March 2026 provides timing certainty
• Company commitment to strengthen compliance and prevention systems

Negative

• Cash outflow of €368m in March 2026
• Shortfall of €2m versus provisions (interest included)
• Final court finding confirms past anti-competitive practices, posing reputational risk

Paris, March 2, 2026

Air France-KLM has taken note of the judgement of the Court of Justice of the European Union rejecting the appeal filed against the decision of the General Court of Justice of the European Union confirming the decision of the European Commission of 17 March 2017 against 13 cargo operators, including Group airlines Air France, KLM and Martinair for past practices considered to be anti-competitive in the air cargo sector.

The practices in question date back more than 20 years and have been subject of proceedings before the European Courts, resulting in a decision that has now become final.

Air France-KLM confirms its commitment to comply strictly with competition rules while constantly ensuring the effectiveness of the prevention system that it implements in the framework of its general compliance policy.

Provisions for €366m had been made in respect of these fines - which amount to a total of €368m including interest. The full amount will be paid in March 2026.

Investor Relations                                                        

Michiel Klinkers                        Marouane Mami                                                            

michiel.klinkers@airfranceklm.com        marouane.mami@airfranceklm.com

Website : www.airfranceklm.com

Attachment

• PR Air France-KLM Cargo EN

FAQ

What did Air France-KLM announce about the €368m Cargo judgement and payment date (AFLYY)?

Air France-KLM will pay €368m in March 2026 to satisfy the final EU court judgement. According to the company, the amount includes interest and settles long-running proceedings related to historic cargo practices more than 20 years old.

How much had Air France-KLM provisioned for the Cargo fines before the €368m payment (AFLYY)?

The company had provisioned €366m prior to the final payment. According to the company, the booked provisions cover most of the liability, with the total payment of €368m including accrued interest to be made in March 2026.

Does the Court of Justice ruling against Air France-KLM change the legal status of the Cargo case (AFLYY)?

Yes. The Court of Justice rejected the appeal, making the prior decision final and enforceable. According to the company, this confirms the European Commission decision against historic practices and triggers the scheduled payment in March 2026.

What impact does the €368m payment have on Air France-KLM's compliance stance (AFLYY)?

The company emphasized reinforced compliance measures and prevention systems following the judgement. According to the company, it remains committed to strict competition rules while implementing its general compliance policy to prevent future breaches.

Will the €368m Cargo payment cause immediate cash payments or is it covered by provisions (AFLYY)?

The full amount will be paid in cash in March 2026, and most of it was provisioned at €366m. According to the company, provisions cover nearly all the liability, with the balance reflecting interest included in the final amount.