Air France-KLM lowered its net debt by €200 million ($259 million) during the three months ending September 2012.
At 30 September 2012, group's net debt position stood at €6 billion as Air France-KLM has reduced its net debt by €500 million since the beginning of the year.
Long-term debt was €9.42 billion, compared with €9.49 billion at 30 June 2012.
Air France-KLM reported €2.69 billion in cash and cash equivalents at the end of the third quarter, down from €2.88 billion in last year's corresponding quarter.
At 30 September it had net cash of €3.4 billion and fully available credit lines of €1.85 billion.
The group financed €583 million worth of aircraft through sale and leaseback transactions in the nine-month period. In January this year, Air France-KLM said it intended to generate €700 million in sale and leaseback transactions under its new 2012-14 transformation plan, with €500 million targeted this year.
The group improved operating profits by more than a quarter to reach €506 million during the three months period. For the first nine-months Air France-KLM group operating losses are roughly unchanged at €157 million, but net losses are sharply higher at €957 million after heavy one-off restructuring costs.