Air France-KLM CEO Ben Smith said the group will respond “aggressively” to any suppliers that increase prices of parts and materials for its maintenance operation as a result of tariffs.
However, he said it was “too soon to tell” if tariffs would be retained in aviation from either side of the Atlantic.
“First, the U.S. is an exporter of aviation. So, they really would hurt themselves if they would continue to stick on that part. And it all depends for us more on the retaliation from Europe,” he said on a recent earnings call.
Smith also noted that the Franco-Dutch group’s order book of predominantly Airbus aircraft should insulate it from any potential tariffs as it is “not very dependent on . . . all the deliveries of Boeing.” Even for Boeing aircraft, he said, some parts are manufactured in Europe.
Smith added: “If you look in the contracts, usually there's not an exception to make for any import tariffs . . . but we are carefully watching the situation and we will aggressively reply to any suppliers which are intending to increase their fees.”
Air France KLM Engineering & Maintenance (AFI KLM E&M) more than doubled its operating profit in the first quarter of 2025, as compared with the prior-year period, posting €65 million ($73.5 million).
Third-party sales, meanwhile, rose 12% to €591 million. The MRO provider highlighted booming demand for its engine shops in France and the Netherlands, although it did also note ongoing headwinds for its component business from supply chain difficulties.
Nonetheless, AFI KLM E&M was the only profitable segment of the group in the three months to the end of March 2025, with Air France’s network and low-cost flying operations both in the red for the quarter.
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