Air France-KLM (OTCMKTS:AFLYY) Shares Gap Up Following Strong Earnings

Air France-KLM SA (OTCMKTS:AFLYY) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $1.33, but opened at $1.4450. Air France-KLM shares last traded at $1.4350, with a volume of 183,600 shares.

The transportation company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.04 by $0.19. Air France-KLM had a return on equity of 118.01% and a net margin of 5.00%.The business had revenue of $9.53 billion for the quarter, compared to the consensus estimate of $9.43 billion.

Key Headlines Impacting Air France-KLM

Here are the key news stories impacting Air France-KLM this week:

• Positive Sentiment: Q4 swing to profit with an earnings beat and revenue beat — Air France-KLM reported Q4 EPS of $0.23 vs. consensus ~$0.04 and revenue slightly above expectations, underscoring a profitable quarter that supports the recovery thesis. Air France-KLM returns to profit in fourth quarter
• Positive Sentiment: Full-year operating result tops €2bn and margin expands — FY2025 operating result exceeded €2bn with a 6.1% margin, revenue +4.9% to €33.0bn and unit revenue growth, signaling structural improvement and disciplined cost/fleet execution. Full Year 2025
• Positive Sentiment: Lower unit costs and fuel efficiencies helped drive the quarter’s profitability — Management highlighted productivity gains and fuel hedging benefits that supported the swing to profit. Air France-KLM Posts Swing to Profit Amid Drop in Costs
• Neutral Sentiment: Full consolidated financial statements published — Detailed FY2025 consolidated statements and notes were released for investors to review underlying cash flow, debt and accounting details. Consolidated Financial Statements and Notes 2025
• Neutral Sentiment: Earnings call transcript available — The Q4 earnings call transcript provides management colour on margins, capacity plans and guidance; useful for assessing execution but mixed on long-term headwinds. Air France-KLM SA (AFLYY) Q4 2025 Earnings Call Transcript
• Negative Sentiment: CEO warns Europe isn’t protecting the industry; cites cost pressures and fleet delays — Comments from CEO Benjamin Smith signaling regulatory/competitive risks and supply-chain/fleet delivery delays raise concerns about future margin sustainability. Air France-KLM CEO: Europe not protecting our industry
• Negative Sentiment: Missed green bond target despite record profit — While the group posted a record ~€2bn profit, it missed a green bond target, which may worry ESG-focused investors and could affect financing/market sentiment. Air France-KLM posts record €2 bln profit but misses green bond target

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on AFLYY shares. Citigroup reaffirmed a “neutral” rating on shares of Air France-KLM in a report on Friday. JPMorgan Chase & Co. upgraded shares of Air France-KLM from a “neutral” rating to an “overweight” rating in a research report on Monday, December 1st. Oddo Bhf upgraded shares of Air France-KLM from a “neutral” rating to an “outperform” rating in a research note on Friday, February 6th. Royal Bank Of Canada initiated coverage on Air France-KLM in a report on Tuesday, January 20th. They set a “hold” rating on the stock. Finally, Barclays downgraded Air France-KLM from an “equal weight” rating to an “underweight” rating in a research report on Wednesday, January 14th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold”.

Air France-KLM Stock Down 4.3%

The company has a quick ratio of 0.60, a current ratio of 0.65 and a debt-to-equity ratio of 5.64. The stock’s fifty day moving average price is $1.30 and its 200-day moving average price is $1.35. The company has a market capitalization of $3.73 billion, a price-to-earnings ratio of 2.15, a P/E/G ratio of 0.10 and a beta of 1.28.

Air France-KLM Company Profile

Air France-KLM is a leading European airline group formed in 2004 through the merger of France’s flagship carrier Air France and the Netherlands’ national airline KLM Royal Dutch Airlines. Headquartered in Paris and Amstelveen, the group provides passenger, cargo and maintenance services across a global network, connecting major hubs in Europe, North America, Asia, Africa and Latin America.

The company’s primary business activities include scheduled passenger transport on short, medium and long-haul routes; air freight operations under Air France-KLM Cargo; and technical support and maintenance services through AFI KLM E&M.