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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 57 (OpenAI - 4o)
Rating:57Neutral
Price Target:
€12.00
▲(2.39% Upside)
The overall stock score reflects a balance of improving financial performance and attractive valuation, offset by technical indicators showing mixed signals. The high leverage and negative equity remain significant risks, but the stock's low P/E ratio suggests potential value.
Positive Factors
Revenue Growth
Consistent revenue growth and margin improvements suggest a strengthening market position and operational efficiency, enhancing long-term business prospects.
Cash Flow Improvements
Significant free cash flow growth indicates enhanced cash generation ability, providing more resources for debt reduction and strategic investments.
Debt Reduction
Ongoing debt reduction efforts improve financial stability and decrease interest burden, supporting long-term solvency and operational flexibility.
Negative Factors
High Leverage
High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.
Negative Equity
Negative equity indicates financial instability, which could impact investor confidence and the company's ability to secure favorable financing terms.
Cash Conversion Efficiency
Low cash conversion efficiency suggests challenges in translating earnings into cash, potentially affecting liquidity and the ability to fund operations and growth.

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

AIR France KLM Business Overview & Revenue Model

Company DescriptionAir 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 MoneyAir France-KLM generates revenue primarily through the sale of airline tickets for both passenger and cargo services. Key revenue streams include passenger fare income, which is derived from ticket sales across its extensive domestic and international routes, and cargo revenue from the transportation of goods. Additionally, the airline benefits from ancillary revenues obtained through services such as baggage fees, seat selection, and in-flight sales. The company also engages in partnerships and code-sharing agreements with other airlines, enhancing its market reach and operational efficiency. Loyalty programs, such as Flying Blue, contribute to revenue by encouraging repeat business and customer retention. Moreover, the airline's participation in global airline alliances, like the SkyTeam alliance, allows for expanded service offerings and revenue-sharing opportunities across member airlines.

AIR France KLM Financial Statement Overview

Summary
Air France KLM shows improving revenue and profitability metrics, with a gross profit margin of 22.76% and a net profit margin of 3.18%. However, the high leverage and negative equity position pose significant financial risks, necessitating a focus on balance sheet strengthening.
Income Statement
65
Positive
The income statement shows a positive trend with revenue growth and improving margins. The TTM data indicates a gross profit margin of 22.76% and a net profit margin of 3.18%, which are improvements over previous years. However, the airline industry faces challenges with fluctuating fuel costs and economic conditions, which can impact profitability.
Balance Sheet
40
Negative
The balance sheet reveals significant leverage with a high debt-to-equity ratio of -15.69 in the TTM period, indicating financial risk. The negative stockholders' equity suggests potential solvency issues. Despite this, the company has managed to reduce its debt over time, which is a positive sign.
Cash Flow
55
Neutral
Cash flow analysis shows strong free cash flow growth of 290% in the TTM period, indicating improved cash generation. However, the free cash flow to net income ratio is relatively low at 18.41%, suggesting limited cash conversion efficiency. The operating cash flow to net income ratio is also modest at 26.53%.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue32.47B31.46B30.02B26.39B14.31B11.09B
Gross Profit7.39B4.99B6.17B7.97B3.10B1.00M
EBITDA5.31B4.02B4.64B3.73B-371.00M-3.65B
Net Income1.03B317.00M934.00M728.00M-3.27B-7.03B
Balance Sheet
Total Assets38.35B36.16B34.49B32.30B30.68B30.21B
Cash, Cash Equivalents and Short-Term Investments6.31B5.98B7.38B7.23B6.80B6.71B
Total Debt12.80B14.53B13.53B14.71B16.24B18.75B
Total Liabilities37.04B35.36B33.99B34.78B34.50B35.63B
Stockholders Equity-816.00M-1.76B-2.05B-3.00B-3.82B-5.43B
Cash Flow
Free Cash Flow897.00M-232.00M-426.00M1.88B-668.00M-4.92B
Operating Cash Flow4.87B3.50B3.13B4.86B1.53B-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-77.00M7.15B

AIR France KLM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.72
Price Trends
50DMA
12.68
Negative
100DMA
11.48
Positive
200DMA
9.97
Positive
Market Momentum
MACD
-0.17
Negative
RSI
45.53
Neutral
STOCH
66.44
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 11.72 is above the 20-day moving average (MA) of 11.61, below the 50-day MA of 12.68, and above the 200-day MA of 9.97, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 66.44 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
76
Outperform
$161.23B32.0923.80%1.48%5.12%59.43%
67
Neutral
€126.32B28.7335.36%0.96%14.19%161.87%
67
Neutral
€8.34B33.624.63%4.26%2.16%-64.02%
66
Neutral
€99.77B29.0813.92%1.90%1.46%12.62%
62
Neutral
€10.12B-46.54%6.30%8.44%-937.75%
57
Neutral
€3.08B3.245.85%256.22%
55
Neutral
$13.29B17.4210.03%0.93%7.13%-12.93%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:AF
AIR France KLM
11.73
2.81
31.48%
FR:AIR
Airbus Group SE
203.70
65.57
47.47%
FR:AI
Air Liquide
173.24
5.34
3.18%
FR:RNO
Renault
34.94
-4.00
-10.27%
FR:RXL
Rexel SA
28.91
4.43
18.11%
FR:SAF
SAFRAN SA
303.10
95.05
45.68%
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: Oct 15, 2025