Air France KLM (AFLYY) AI Stock Analysis

• Market Cap: $3.63B
• Dividend Yield: N/A
• Average Volume (3M): 13.55K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.73
• Revenue Growth: 6.69%
• EPS Growth: 268.38%
• Country: US
• Employees: 78,399
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.16
• Shares Outstanding: 2,627,698,700
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 13,555
• 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 Cap: 5.03
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 2.47
• Enterprise Value/Ebitda: 3.44
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $1.50 ▲(10.29% Upside)

Air France KLM's overall stock score reflects strong earnings call results and undervaluation, offset by financial risks due to high leverage and mixed technical indicators. The company's strategic expansions and premiumization efforts are positive, but profitability and geopolitical challenges remain concerns.

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 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 Financial Statement Overview

Summary

Air France KLM shows strong revenue growth and improved operational efficiency, but faces challenges with profitability and high leverage. The balance sheet is heavily leveraged, posing financial risks, while 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: 1.36
• 50DMA: Negative
• 100DMA: Positive
• 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 1.36 is above the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.42, and above the 200-day MA of 1.15, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 56.63 is Neutral, neither overbought nor oversold. The STOCH value of 76.77 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	79 Outperform	$33.06B	15.38	27.12%	1.53%	10.61%	37.32%
DAL	78 Outperform	$38.20B	8.25	28.52%	1.15%	4.33%	-1.58%
LTM	69 Neutral	$13.11B	11.58	161.29%	2.24%	5.07%	62.83%
UAL	68 Neutral	$31.11B	9.63	25.59%	―	4.24%	20.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AFLYY	61 Neutral	$3.63B	3.35	―	―	6.69%	268.38%
LUV	61 Neutral	$15.74B	46.37	4.22%	2.37%	0.65%	―

Air France KLM Corporate Events

Air France-KLM’s Earnings Call Highlights Growth

Air France-KLM’s recent earnings call painted a picture of optimism, buoyed by strong revenue and income growth, as well as strategic investments in premium services. The company highlighted significant advancements despite operational challenges faced by its subsidiaries, Transavia and KLM.

Air France-KLM Reports Strong Financial Turnaround

Air France-KLM SA is a major airline group headquartered in France, operating in the passenger and cargo transportation sectors, along with aeronautics maintenance and leisure travel services. The company recently released its earnings report for the first half of 2025, showcasing a notable improvement in financial performance compared to the previous year. Key highlights include a significant increase in revenues and net income, driven by strong passenger and cargo traffic, as well as strategic financial maneuvers such as the issuance of hybrid bonds and the extension of revolving credit facilities. The company reported a net income of €401 million, a substantial turnaround from a loss of €314 million in the same period last year, with earnings per share rising to €1.09. Looking ahead, Air France-KLM remains focused on strengthening its operational and financial position, with plans to acquire a majority stake in SAS and continue enhancing its strategic partnerships. The company’s management remains optimistic about future growth and financial stability, supported by ongoing strategic initiatives and market recovery.