Air France KLM (AFLYY) AI Stock Analysis

• Market Cap: $3.35B
• Dividend Yield: N/A
• Average Volume (3M): 2.67K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.71
• Revenue Growth: 7.97%
• EPS Growth: 970.83%
• Country: US
• Employees: 78,399
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.10
• Shares Outstanding: 2,627,698,700
• 10 Day Avg. Volume: 8,016
• 30 Day Avg. Volume: 2,672
• PEG Ratio: -0.09
• Price to Book (P/B): -1.16
• Price to Sales (P/S): 0.07
• P/FCF Ratio: -8.84
• Enterprise Value/Market Cap: 5.91
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 2.68
• Enterprise Value/Ebitda: 3.73
• 1Y Price Target: $11.65
• Price Target Upside: 810.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.45
• Revenue Forecast (FY): $38.09B

• Rating: 60 Neutral
• Price Target: $1.50 ▲(17.19% Upside)

Air France KLM's stock score is primarily influenced by its financial performance and valuation. Strong revenue growth and improved cash flow are offset by high leverage and low profitability. The technical analysis suggests mixed signals with potential short-term support but longer-term resistance. The stock's low P/E ratio indicates it may be undervalued, providing potential upside.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market reach and enhance its service offerings, supporting long-term business stability.

Premiumization Strategy

The successful premiumization strategy boosts revenue per passenger and enhances brand positioning, contributing to sustainable competitive advantage.

Debt Management

Effective debt management reduces financial risk and enhances financial flexibility, supporting long-term operational and strategic initiatives.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and withstand economic downturns.

Profitability Concerns

Low profitability margins indicate challenges in cost management and pricing power, which could impact long-term financial health and shareholder returns.

Geopolitical and Economic Headwinds

External geopolitical and economic pressures can disrupt operations and increase costs, affecting the company's ability to maintain stable growth.

Air France KLM Business Overview & Revenue Model

Company Description

Air France-KLM SA, together with its subsidiaries, provides passenger and cargo transportation services on scheduled flights in Metropolitan France, Benelux, rest of Europe, and internationally. The company operates through Network, Maintenance, Transavia, and Other segments. It also offers airframe and engine maintenance services; component support services comprising electronic, mechanical, pneumatic, hydraulic, etc.; and other services, as well as operates point-to-point flights to/from the Netherlands and France. As of December 31, 2021, it operated a fleet of 332 aircraft. The company was founded in 1919 and is headquartered in Paris, France.

How the Company Makes Money

Air France KLM generates revenue primarily through ticket sales from passenger flights, which constitute the bulk of its income. Additional revenue streams include cargo services, where the airline transports freight on its passenger and dedicated cargo flights, and ancillary services that include fees from baggage, in-flight services, and partnerships with hotels and car rental companies. The company also benefits from codeshare agreements and alliances, particularly through its membership in the SkyTeam alliance, which allows it to expand its reach and share resources with other airlines. Significant partnerships with global travel agencies and corporate clients further enhance its revenue through group travel arrangements and corporate contracts.

Air France KLM Financial Statement Overview

Summary

Air France KLM shows strong revenue growth and improved operational efficiency, but profitability remains a concern with a low net profit margin. The balance sheet is heavily leveraged, posing financial risks, though cash flow generation has improved significantly.

Income Statement

Air France KLM has shown a positive trajectory in revenue growth, with a TTM revenue growth rate of 1.55%. The gross profit margin has improved to 22.76% in TTM, indicating better cost management. However, the net profit margin remains relatively low at 3.18%, suggesting limited profitability. The EBIT and EBITDA margins have improved, reflecting operational efficiency gains.

Balance Sheet

The balance sheet reveals significant leverage with a negative debt-to-equity ratio of -15.69 in TTM, highlighting high financial risk. The negative stockholders' equity indicates potential solvency issues. Return on equity is negative, reflecting challenges in generating returns for shareholders.

Cash Flow

The cash flow statement shows a strong free cash flow growth rate of 290% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.27, suggesting adequate cash flow coverage of earnings. However, the free cash flow to net income ratio is relatively low at 0.18, indicating limited free cash flow relative to net income.

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

• Technical Analysis Sentiment: Positive
• Last Price: 1.28
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.28 is above the 20-day moving average (MA) of 1.18, above the 50-day MA of 1.27, and above the 200-day MA of 1.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 74.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AFLYY.

Air France KLM Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYAAY	83 Outperform	$34.22B	12.75	28.67%	1.51%	14.75%	71.73%
DAL	77 Outperform	$43.91B	9.51	28.52%	1.01%	4.33%	-1.58%
UAL	68 Neutral	$33.98B	10.51	25.59%	―	4.24%	20.29%
LTM	67 Neutral	$14.87B	12.23	135.74%	1.99%	6.81%	58.22%
LUV	65 Neutral	$18.52B	54.37	4.22%	1.90%	0.65%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AFLYY	60 Neutral	$3.35B	3.11	―	―	7.97%	970.83%

Air France KLM Corporate Events

Air France-KLM Reports Stable Q3 2025 Earnings

Air France-KLM SA is a leading airline group operating in the aviation sector, known for its extensive network of passenger and cargo services across the globe. In the third quarter of 2025, Air France-KLM reported stable operating results with a margin of 13.1%, driven by a 2.6% increase in group revenues to €9.2 billion. The company saw a 5.1% rise in capacity, although unit revenue at constant currency slightly decreased by 0.5% due to challenges in the Cargo and Transavia segments. The group maintained strong cash flow performance with €0.7 billion in recurring adjusted operating free cash flow and a solid cash position of €9.5 billion. Key financial highlights include an operating result of €1.2 billion, a leverage ratio of 1.6x, and ongoing fleet renewal efforts, with 32% of the fleet now consisting of next-generation aircraft. Looking ahead, Air France-KLM expects a 4-5% increase in capacity for 2025, with unit costs rising by a low single digit. The company remains focused on its premiumization strategy and sustainability initiatives, including fleet renewal and the rollout of free high-speed Wi-Fi on Air France flights.