Air France-KLM will incur costs of €7.5 million ($8.83 million) after missing emissions targets connected to two sustainability-linked bonds it issued in 2023. The carrier group says in its full-year results that its emissions intensity as measured by grams of CO2 equivalent per revenue tonne kilometre (gCO₂eq/RTK) stood at 913 for the year ending 31 December 2025. This represents a 1.6% decrease in gCO₂eq/RTK compared to 2024 and means that Air France-KLM Group "has not achieved the sustainability performance target of reduction of its GHG emission intensity by 10% from a 2019 baseline by 2025 as defined in the final terms of the sustainability-linked bonds issued in January 2023". The SkyTeam group raised €1 billion ($1.07 billion) in January 2023, composed of one €500 million bond with a 3.3-year maturity and a coupon of 7.250%; and a €500 million with a 5.3-year maturity and a coupon of 8.125%. The bonds’ coupons were indexed on Air France-KLM Group’s target to reduce its well-to-wake Scope 1 and 3 jet fuel greenhouse-gas emissions by 10% per revenue tonne-kilometre by 2025 compared with 2019, as part of its wider decarbonisation roadmap. In its latest results Air France-KLM and its airlines blame "headwinds to its GHG intensity progression", including delays in its fleet renewal plan due to constraints in the supply chain; engine issues with part of its new generation aircraft fleet, such as several Airbus A220s. These issues meant that the group was not able to operate the A220s to their "maximum capacity", while it also incurred higher fuel consumption due to longer flight time on certain routes caused by "different geopolitical circumstances", adding that: "These headwinds were faced by several actors in the airline industry". As a result Air France-KLM is obliged to make a payment of a €750 redemption premium on the bonds maturing on 31 May 2026. For bonds maturing on 31 May, 2028 a 0.375% "step-up" on the coupons will be paid on 31 May 2027 and on 31 May 2028.

Lingering disruptions caused by the Covid-19 pandemic led to airline restructurings in 2025, in the view of Fitch Ratings. The ratings agency notes that despite a recovery in travel demand, "pandemic-era disruptions, elevated operating costs, and overleveraged capital structures" are continuing to drive restructurings in commercial aviation. "In 2025, airlines faced deferred obligations that accumulated during the pandemic and came due in a higher interest rate and tighter credit environment," states Fitch senior director Joshua Clark. He adds: "Spirit Airlines returned to bankruptcy for the second time in a year as it struggled to reduce operating costs amid intensified competition, while Brazilian airlines such as Gol and Azul also faced foreign exchange volatility, lack of direct government support, and a more challenging operating environment." In May 2025, Azul filed for Chapter 11 bankruptcy protection in the USA. A month later, in June, Gol exited Chapter 11. US carrier Spirit in August 2025 filed for Chapter 11.

Turboprop manufacturer ATR is reopening a second final assembly line at its Toulouse headquarters in an effort to increase production after deliveries last year declined to 32 aircraft amid continued supply-chain bottlenecks, from 35 in 2024. The additional final assembly line, dubbed FAL North, is located next to ATR's active production line (FAL South) in the St Martin area, on the southwest side of Toulouse airport. FAL North had been dormant since the pandemic. During a results briefing on 18 February, ATR senior vice-president of operations and procurement Marion Smeyers said that the European airframer would move components for the first post-Covid aircraft to be assembled in FAL North to the site on 19 February. The first aircraft's assembly will be used to test production processes that have changed since FAL North's closure amid the Covid crisis, Smeyers says. Routine operations, in parallel with FAL South, are scheduled to begin in May. The project's objective is to gradually increase ATR's output. "I'm not going to double the [production] rate right now," says Smeyers. "It creates some surge capacity and gives me more resilience to cope with a certain amount of perturbations." Smeyers describes 2025 as a "challenging year with a lot of disruption, particularly in the supply chain". Last year's delivery of 32 aircraft "clearly is not satisfying for customers [and] for us", she says, adding: "This is not what we want to have as an ambition for ATR, but it is also very much the max[imum] of what we could do with the constraints we had." She cites landing gear, engines, and sub-tier supplies for major aerostructure components as areas of concern during the early part of last year. "High levels" of missing parts and unfinished components resulted in "huge increases" of the time required to complete aircraft assembly. Smeyers says that aircraft assembly times had reached levels that were "simply not sustainable". ATR has since worked with suppliers to improve the situation. The volume of missing parts on the assembly line has been reduced by two-thirds since January 2025, while the level of unfinished aerostructure assemblies has been cut by 90%, the airframer says. Smeyers highlights that the time required for aircraft assembly has been cut by 20% since last summer and that the company wants to further reduce it by 20%. "Those figures are giving us confidence that it is the right time to reopen the FAL North [and] what we are doing with your supply chain is paying off and will continue to pay off." ATR targets a 20% year-on-year increase in deliveries to 38 aircraft in 2026 and wants to reach an annual production of 60 aircraft by 2030, it says. The company previously had a target to reach 60 aircraft a year in the 2028-29 period. During the results briefing, however, chief executive Nathalie Tarnaud Laude insisted that ATR had not delayed its ramp-up plan. The 2030 target is a "horizon", Tarnaud Laude says. "It's not a firm date, and we plan to be at 60 [aircraft] before 2030 actually. So, we have not changed our plan." One objective of the ramp-up plan is to reduce production lead times for aircraft orders. Delivery slots for new orders are not available before 2028, ATR says. Last year, the airframer booked 60 gross orders from nine customers, which translated to 50 net orders and a total backlog of more than 160 aircraft. Its revenue in 2025 reached $1.2 billion, including $538 million for services and support.