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AIR France - KLM (FR:AF)
:AF
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AIR France KLM (AF) AI Stock Analysis

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FR:AF

AIR France KLM

(AF)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
€12.50
▲(6.47% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by improving operating performance (revenue growth and stronger margins) but held back by elevated balance-sheet leverage and limited, volatile free cash flow. Valuation is a key positive due to the very low P/E, while technicals are mixed with near-term weakness against shorter moving averages but support from longer-term averages.
Positive Factors
Sustained Revenue Recovery
The company has more than doubled revenue since 2021, reflecting durable demand recovery and stronger network utilization across passenger, cargo and services. Higher scale improves route economics and fixed-cost absorption, supporting long‑run revenue resilience.
Negative Factors
Elevated Leverage
Extremely high leverage leaves minimal equity cushion and heightens refinancing and interest‑rate sensitivity. The capital structure limits strategic flexibility, increases default risk under downturns, and constrains the group's ability to fund investments without external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Recovery
The company has more than doubled revenue since 2021, reflecting durable demand recovery and stronger network utilization across passenger, cargo and services. Higher scale improves route economics and fixed-cost absorption, supporting long‑run revenue resilience.
Read all positive factors

AIR France KLM (AF) vs. iShares MSCI France ETF (EWQ)

AIR France KLM Business Overview & Revenue Model

Company Description
Air France-KLM S.A., through its various subsidiaries, offers scheduled air transport for both passengers and freight. Its extensive network covers Metropolitan France, the Benelux countries, the remainder of Europe, and numerous international rou...
How the Company Makes Money
Air France-KLM primarily makes money by selling air transportation services, with revenue concentrated in passenger ticket sales across its route networks operated by Air France and KLM. Passenger revenue is driven by seat sales in multiple cabin ...

AIR France KLM Financial Statement Overview

Summary
Operations have recovered with strong revenue growth (€14.3B in 2021 to €34.2B TTM) and improved profitability (EBIT margin ~8.1% TTM; net margin ~4.7% TTM). However, balance-sheet risk is the major constraint: very high leverage (debt €13.7B TTM vs equity ~€0.65B; ~16.5x debt-to-equity) and free cash flow remains low and inconsistent (~€0.32B TTM; negative in 2023–2024), limiting flexibility and resilience.
Income Statement
66
Positive
Balance Sheet
28
Negative
Cash Flow
52
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue34.16B33.01B31.46B30.02B26.39B14.31B
Gross Profit4.94B3.94B4.99B6.17B7.97B3.10B
EBITDA5.30B5.28B4.02B4.64B3.73B-371.00M
Net Income1.13B1.59B317.00M934.00M728.00M-3.27B
Balance Sheet
Total Assets41.61B39.45B36.16B34.49B32.30B30.68B
Cash, Cash Equivalents and Short-Term Investments5.96B6.04B5.98B7.38B7.23B6.80B
Total Debt13.71B22.17B14.53B13.53B14.71B16.24B
Total Liabilities38.82B38.36B35.36B33.99B34.78B34.50B
Stockholders Equity651.00M-983.00M-1.76B-2.05B-3.00B-3.82B
Cash Flow
Free Cash Flow321.00M115.00M-232.00M-426.00M1.88B-668.00M
Operating Cash Flow4.37B4.56B3.50B3.13B4.86B1.53B
Investing Cash Flow-2.18B-3.03B-2.77B-3.24B-2.15B-1.24B
Financing Cash Flow-1.94B-1.62B-2.11B-285.00M-2.76B-77.00M

AIR France KLM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.74
Price Trends
50DMA
12.35
Positive
100DMA
11.01
Positive
200DMA
11.06
Positive
Market Momentum
MACD
-0.08
Negative
RSI
53.11
Neutral
STOCH
75.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:AF, the sentiment is Positive. The current price of 11.74 is below the 20-day moving average (MA) of 12.36, below the 50-day MA of 12.35, and above the 200-day MA of 11.06, indicating a bullish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 75.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:AF.

AIR France KLM Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
€4.27B30.376.65%1.67%12.18%2.47%
62
Neutral
€3.15B3.34-275.02%5.21%13.27%
62
Neutral
€11.86B19.889.06%3.57%5.00%548.17%
59
Neutral
€1.03B8.7710.30%5.16%7.76%18.31%
58
Neutral
€10.60B27.8910.40%2.92%0.59%-31.29%
57
Neutral
€10.82B32.981.40%1.46%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:AF
AIR France KLM
12.89
-0.18
-1.38%
FR:AC
Accor SA
47.33
5.85
14.09%
FR:ADP
Aeroports de Paris ADP
117.80
9.85
9.12%
FR:BAIN
Monte-Carlo Societe des Bains de Mer
139.00
36.67
35.84%
FR:BOL
Bollore
3.79
0.21
5.93%
FR:CDA
Compagnie des Alpes
20.85
-1.26
-5.70%
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.Date of analysis: Aug 01, 2026