Education
About Us
Working with TipRanks
Follow Us
Air France KLM (AFLYY)
OTHER OTC:AFLYY
Top Page
Air France KLM
(OTC:AFLYY)
Rating:67Neutral
Price Target:
$1.50
▼(-3.23% Downside)
Air France KLM (AFLYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.07B
Dividend YieldN/A
Average Volume (3M)11.76K
Price to Earnings (P/E)3.7
Beta (1Y)0.82
Revenue Growth6.69%
EPS Growth268.38%
CountryUS
Employees78,399
SectorIndustrials
Sector Strength84
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.16
Shares Outstanding2,627,698,700
10 Day Avg. Volume10,243
30 Day Avg. Volume11,763
Financial Highlights & Ratios
PEG Ratio-0.86
Price to Book (P/B)-11.63
Price to Sales (P/S)0.65
P/FCF Ratio-88.42
Enterprise Value/Market Cap4.48
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit2.47
Enterprise Value/Ebitda3.44
Forecast
1Y Price Target
$1.50Price Target Upside-3.23% Downside
Rating ConsensusHold
Number of Analyst Covering1
Air France KLM Business Overview & Revenue Model
Company DescriptionAir France KLM (AFLYY) is a leading global airline holding company based in France and the Netherlands, formed by the merger of Air France and KLM Royal Dutch Airlines. The company operates in the air transport sector, providing passenger and cargo transportation services across a vast network of destinations worldwide. With a focus on premium service, Air France KLM offers various classes of travel, including economy, premium economy, business, and first class, alongside ancillary services such as in-flight entertainment, dining, and loyalty programs.
How the Company Makes MoneyAir France KLM generates revenue primarily through the sale of passenger tickets, which constitutes the largest portion of its income. The company operates a comprehensive network of routes, allowing it to cater to both international and domestic travelers. Key revenue streams include cargo services, where the airline transports goods and freight, and ancillary services such as baggage fees, seat selection fees, and onboard sales. Additionally, the company benefits from its loyalty program, Flying Blue, which generates revenue through partnerships with hotels, car rental services, and retail brands. Strategic alliances with other airlines, including membership in the SkyTeam global airline alliance, further enhance its revenue through code-sharing agreements and joint marketing initiatives, increasing passenger volume and operational efficiency.
Air France KLM Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: 22.05%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong revenue and income growth, significant advancements in premium services, and strategic investments. However, challenges faced by Transavia and KLM highlighted ongoing operational hurdles.Q2-2025 Updates
Positive Updates
Strong Revenue and Operating Income Growth
Air France-KLM reported revenue growth of 6.2% year-over-year for Q2 2025, with operating income increasing by EUR 223 million to EUR 736 million.
Premium Cabin Performance
Revenues from La Premiere and Business Class grew by 11%, with Premium Economy cabins experiencing a remarkable 27% revenue growth.
Fleet Renewal Progress
Thirty percent of the group's fleet now consists of new generation aircraft, reflecting continued investment in fleet renewal.
Debt and Financial Stability
The leverage ratio decreased to 1.5x, and adjusted operating free cash flow reached EUR 0.7 billion for the first half of 2025.
Strategic Partnerships and M&A Activity
Air France-KLM announced plans to increase its stake in SAS to 60.5% and established several key partnerships, including with Riyadh Air and AerCap.
Strong Performance in Maintenance Segment
The maintenance segment saw an almost 20% revenue increase, with a strong engine business driving growth.
Negative Updates
Transavia Challenges
Transavia faced a difficult quarter due to a strike in France, geopolitical tensions in the Middle East, and increased competition to Spain, leading to a EUR 25 million impact.
KLM's Headwinds
KLM faced several challenges, including NATO Summit disruptions, increased Schiphol tariffs, and issues with 787 aircraft, resulting in a decline in performance.
Company Guidance
In the second quarter of 2025, Air France-KLM reported a robust financial performance, with revenue increasing by 6.2% year-over-year. The group's operating income reached EUR 736 million, an increase of EUR 223 million from the previous year, resulting in an operating margin of 8.7%. The company's financial health improved with an adjusted operating free cash flow of EUR 0.7 billion and a reduced leverage ratio of 1.5x. Notably, 30% of their fleet now consists of new-generation aircraft, underscoring ongoing investment in fleet renewal. Air France-KLM also saw a 27% revenue growth in Premium Economy cabins, contributing to an 11% revenue increase in La Premiere and Business Class, particularly on North Atlantic routes. Corporate travel demand grew by 6% year-over-year, and Air France-KLM's loyalty program, Flying Blue, continued to expand, marking its 20th anniversary with 30 million members. Additionally, the acquisition of a majority stake in SAS and strategic partnerships, such as those with Riyadh Air and Qantas Airways, reflect Air France-KLM's focus on reinforcing its network and global reach.Air France KLM Financial Statement Overview
Summary
Air France KLM is on a recovery path with improving revenue and operational margins. Despite positive cash flow trends, high leverage and negative equity pose significant financial risks.Income Statement
Air France KLM's income statement shows a recovery trajectory with a positive revenue growth rate of approximately 19% from 2022 to 2023 and a further increase in 2024 and TTM. The gross profit margin in TTM is 18.15%, and the net profit margin is 1.71%, indicating moderate profitability. However, the EBIT margin of 5.17% and EBITDA margin of 14.40% suggest operational efficiency improvements. Challenges remain with maintaining consistent profitability due to industry volatility.72
Positive
Balance Sheet
Air France KLM's balance sheet reflects high leverage with a negative stockholders' equity of -$1.945 billion in TTM, indicating financial risk. The debt-to-equity ratio can't be calculated due to negative equity. The equity ratio remains negative, suggesting a reliance on debt financing. Despite these challenges, there has been improvement in reducing net debt over time.55
Neutral
Cash Flow
The cash flow statement shows a positive trend with an improvement in operating cash flow, reaching $4.632 billion in TTM. The free cash flow has turned positive, indicating better cash management. The operating cash flow to net income ratio is 8.46, showing strong cash generation relative to net income. However, the free cash flow growth rate from the previous year is substantial, highlighting potential volatility.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.47B | 31.46B | 30.02B | 26.39B | 14.31B | 11.09B |
| Gross Profit | 7.39B | 6.03B | 6.17B | 7.97B | 3.10B | 1.00M |
| EBITDA | 5.31B | 2.98B | 4.64B | 3.73B | -371.00M | -3.65B |
| Net Income | 1.03B | 317.00M | 934.00M | 728.00M | -3.27B | -7.03B |
Balance Sheet | ||||||
| Total Assets | 38.35B | 36.16B | 34.49B | 32.30B | 30.68B | 30.21B |
| Cash, Cash Equivalents and Short-Term Investments | 6.31B | 5.98B | 7.38B | 7.23B | 6.80B | 6.71B |
| Total Debt | 12.80B | 14.53B | 13.53B | 14.71B | 16.24B | 18.75B |
| Total Liabilities | 37.04B | 35.36B | 33.99B | 34.78B | 34.50B | 35.63B |
| Stockholders Equity | -816.00M | -1.76B | -2.05B | -3.00B | -3.82B | -5.43B |
Cash Flow | ||||||
| Free Cash Flow | 897.00M | -232.00M | -426.00M | 1.88B | -668.00M | -4.92B |
| Operating Cash Flow | 4.87B | 3.50B | 3.13B | 4.86B | 1.53B | -2.83B |
| Investing Cash Flow | -3.01B | -2.77B | -3.24B | -2.15B | -1.24B | -1.58B |
| Financing Cash Flow | -2.31B | -2.11B | -285.00M | -2.76B | -77.00M | 7.15B |
Air France KLM Technical Analysis
Positive
1.55
Price Trends
1.20
Positive
1.06
Positive
0.97
Positive
Market Momentum
0.10
Negative
76.47
Negative
98.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFLYY, the sentiment is Positive. The current price of 1.55 is above the 20-day moving average (MA) of 1.36, above the 50-day MA of 1.20, and above the 200-day MA of 0.97, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 76.47 is Negative, neither overbought nor oversold. The STOCH value of 98.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AFLYY.
Air France KLM Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $31.97B | 15.06 | 27.12% | 1.33% | 10.61% | 37.32% | |
81 Outperform | $34.93B | 7.76 | 30.07% | 1.09% | 3.01% | -0.90% | |
80 Outperform | $28.92B | 8.95 | 27.70% | ― | 4.23% | 13.13% | |
67 Neutral | $4.07B | 3.75 | -7.21% | ― | 6.69% | 268.38% | |
62 Neutral | $7.64B | 14.89 | -21.27% | ― | 1.50% | ― | |
58 Neutral | HK$13.59B | 5.63 | -2.78% | 5.79% | 2.29% | -57.49% | |
49 Neutral | $15.26B | 43.70 | 4.30% | 2.48% | 1.64% | 284.24% |
* Industrials Sector Average
Performance Comparison
AFLYY
Air France KLM
1.58
0.75
90.36%
DAL
Delta Air Lines
58.44
19.40
49.69%
RYAAY
Ryanair Holdings
65.49
25.09
62.10%
LUV
Southwest Airlines
29.06
4.22
16.99%
UAL
United Airlines Holdings
98.47
57.55
140.64%
AAL
American Airlines
12.98
3.17
32.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.