Heatwaves are pushing European holidaymakers toward northern destinations, Air France-KLM chief executive Ben Smith told the FT, calling the shift the "biggest change" in recent weeks as the group posted a 70 per cent fall in second‑quarter net profit to €190mn because of soaring fuel costs.

While U.S. visitors largely keep their plans, Europeans are avoiding scorching parts of France and Spain, where wildfires have forced evacuations. Jet‑fuel prices doubled after the Iran conflict, lifting the carrier’s full‑year fuel bill to an expected $8.9bn, about $2bn more than a year ago.

The airline trimmed capacity forecasts — long‑haul growth cut to 3 % and short‑haul down 1 % — and slowed Transavia’s expansion to 8 %. No routes were cut; instead aircraft were placed in maintenance or new launches delayed. Meanwhile, Air France‑KLM lodged a binding bid for up to 49.9 % of state‑owned Portuguese carrier TAP, competing with Lufthansa; analysts value TAP at least €1.5bn.