# Air France-KLM (AF.PA)

Canonical: https://gigainvestors.com/s/AF.PA

Analysis as of: 2026-10-16T07:39:10.625Z. Financial observations: FY2002–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 10.54 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 3

- Operating margin variation: 6.34×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: -0.02×

- FY2018: 0.05×

- FY2019: 0.04×

- FY2020: -0.42×

- FY2021: -0.11×

- FY2022: 0.03×

- FY2023: 0.06×

- FY2024: 0.05×

- FY2025: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 14.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 11.1%

- ROIC, second-lowest year: -24.0%

- Typical minus recent gross margin: 14.0 pp

- Typical gross margin (annual median): 25.9%

- Recent gross margin (lower of latest and 3-year median): 11.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 11.8%

- ROIC including acquisitions, ten-year median: -8.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.1%

- FY2017: -3.6%

- FY2018: 9.4%

- FY2019: 8.7%

- FY2020: -57.3%

- FY2021: -24.0%

- FY2022: 19.2%

- FY2023: 27.8%

- FY2024: 19.1%

- FY2025: 12.7%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: -19.44×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR -5.9B

- Net income, five-year total: EUR 305M

- Return on incremental invested capital: 46.7%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.9 pp

- Working capital / revenue, final three-year average: 2.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.34×

- FY2022: -1.15×

- FY2023: -0.78×

- FY2024: -1.33×

- FY2025: 0.27×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.4% vs 19.1%

- Per-share earnings: 1.64 to 5.01 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 14.5%

- Ordinary dilution, 5-year annual growth: 20.9%

- Market cap gain: EUR 1.3B

- Cumulative retained earnings: EUR -9.7B

- Diluted shares, 10-year annual growth: 14.5%

- Diluted shares, 5-year annual growth: 20.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.9%

- Per-share value change: EUR 3.36

- Per-share value, starting three-year median: EUR 1.64

- Per-share value, ending three-year median: EUR 5.01

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 21.3%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 444M

- Cumulative net income, 10 years: EUR -5.5B

- ROIC, first three-year median: 9.4%

- ROIC, last three-year median: 19.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 10.85

- FY2017: EUR -2.57

- FY2018: EUR 3.89

- FY2019: EUR 2.72

- FY2020: EUR -65.65

- FY2021: EUR -22.25

- FY2022: EUR 5.67

- FY2023: EUR 5.01

- FY2024: EUR 1.21

- FY2025: EUR 5.75

### accounting: pass

- Sloan accruals: -7.5%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.87×

- Accounting red flags: 0

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.3%

- FY2017: -13.0%

- FY2018: -11.4%

- FY2019: -11.7%

- FY2020: -13.9%

- FY2021: -15.6%

- FY2022: -12.8%

- FY2023: -6.4%

- FY2024: -8.8%

- FY2025: -7.5%

## Holders

## Price story

Down 49% since Mar 2022 · "Air France-KLM Cuts Capacity Outlook As Fuel Bill Jumps $2.4 Billion" (finance.yahoo.com, Apr 2026) · sales +4.9%

Story as of 2026-10-16T10:00:10.555Z; price observation 2026-10-15.

- 2025-07-31: Air France-KLM's Q2 profit rises, helped by premium sales ([finance.yahoo.com](https://finance.yahoo.com/news/air-france-klms-q2-profit-060839334.html))

- 2025-11-06: Air France-KLM Posts Lower Net Profit After Costs Rise ([finance.yahoo.com](https://finance.yahoo.com/m/842cbe81-a6da-3e49-8216-4ed7b6bc04ee/air-france-klm-posts-lower.html))

- 2026-02-19: Air France-KLM Posts Swing to Profit Amid Drop in Costs ([finance.yahoo.com](https://finance.yahoo.com/m/bdb51af3-ad49-39ee-8203-887c573ae30d/air-france-klm-posts-swing-to.html))

- 2026-03-02: Air France-KLM to pay €368m related to Cargo final judgement ([finance.yahoo.com](https://finance.yahoo.com/news/air-france-klm-pay-368m-073000457.html))

- 2026-04-30: Air France-KLM Cuts Capacity Outlook As Fuel Bill Jumps $2.4 Billion ([finance.yahoo.com](https://finance.yahoo.com/sectors/energy/articles/air-france-klm-cuts-capacity-173522285.html))

### Sales · FY2024–2025

sales +4.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: EUR 25B 

- FY2017: EUR 26B 

- FY2018: EUR 27B 

- FY2019: EUR 27B 

- FY2020: EUR 11B 

- FY2021: EUR 14B 

- FY2022: EUR 26B 

- FY2023: EUR 30B 

- FY2024: EUR 31B 

- FY2025: EUR 33B 

### Gross margin · FY2025

gross margin 11.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 32.0% 

- FY2017: 33.5% 

- FY2018: 33.6% 

- FY2019: 32.0% 

- FY2020: 0.0% 

- FY2021: 21.7% 

- FY2022: 30.2% 

- FY2023: 20.5% 

- FY2024: 15.8% 

- FY2025: 11.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in airlines; annual sales are EUR 33 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); FY2025: revenue 33007000000; grossProfit 3941000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AF.PA: Air France-KLM SA, together with its subsidiaries, provides passenger and cargo transportation services. The company operates through Network, Maintenance, Transavia, and Other segments. It also offers airframe and engine maintenance, and component support services, including electronic, mechanical, pneumatic, hydraulic, and other services. The company provides its services under the Air France, KLM, and Transavia brand names. It operates in France, rest of Europe, North Africa, the Caribbean, West Indies, French Guyana, Indian Ocean, Africa, the Middle East, North America, Mexico, French Polynesia, South America, Asia, and New Caledonia. Air France-KLM SA was founded in 1919 and is headquartered in Paris, France.

### Why customers stay

Margins ranged from 11.9% to 20.5% during 2023–25; it earns 11.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); FY2023: grossProfit / revenue = 20.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); FY2024: grossProfit / revenue = 15.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); FY2025: grossProfit / revenue = 11.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); 10-year return on capital observations [[2016,0.13122286541244574],[2017,-0.035893515506397744],[2018,0.09424428822495606],[2019,0.08655285405417758],[2020,-0.5728856964397252],[2021,-0.24047301057317752],[2022,0.1921356251471627],[2023,0.27772361421730285],[2024,0.19088938132981417],[2025,0.1274903622959502]]; median 0.11086732526045313. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 46.7% on new investment; paid dividends in 9 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); FY2016: growth capex 0; upkeep 2072000000; owner earnings 291000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); FY2017: growth capex 0; upkeep 2312000000; owner earnings 170000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); FY2018: growth capex 0; upkeep 2758000000; owner earnings 521000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); FY2025: growth capex 1201000000; upkeep 3248000000; owner earnings 422317559.8631699. Growth capex / owner earnings = 2.843831547968599.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); Incremental return on capital 0.46738216940181837, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); Dividend observations: [[2016,38000000],[2017,38000000],[2018,38000000],[2019,26000000],[2020,0],[2021,1000000],[2022,252000000],[2023,90000000],[2024,1000000],[2025,2000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 54.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AF.PA SharesStats.PercentInsiders = 54.361000000000004 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:10.625Z); Closing price 10.535 EUR; reporting-to-trading FX 1; FY2025 annual sales per share 119.23072755054491; price multiple 0.08835809540400522. FY2025 cash earnings/share 1.5255318544507697. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-11: EUR 25.67 per share

- 2016-12: EUR 26.09 per share

- 2017-01: EUR 24.70 per share

- 2017-02: EUR 33.52 per share

- 2017-03: EUR 35.80 per share

- 2017-04: EUR 38.91 per share

- 2017-05: EUR 50.69 per share

- 2017-06: EUR 62.97 per share

- 2017-07: EUR 57.67 per share

- 2017-08: EUR 64.71 per share

- 2017-09: EUR 67.28 per share

- 2017-10: EUR 67.83 per share

- 2017-11: EUR 60.24 per share

- 2017-12: EUR 68.49 per share

- 2018-01: EUR 63.09 per share

- 2018-02: EUR 49.31 per share

- 2018-03: EUR 45.44 per share

- 2018-04: EUR 41.04 per share

- 2018-05: EUR 34.36 per share

- 2018-06: EUR 35.22 per share

- 2018-07: EUR 39.39 per share

- 2018-08: EUR 41.56 per share

- 2018-09: EUR 45.25 per share

- 2018-10: EUR 43.17 per share

- 2018-11: EUR 51.34 per share

- 2018-12: EUR 47.81 per share

- 2019-01: EUR 55.48 per share

- 2019-02: EUR 54.75 per share

- 2019-03: EUR 50.56 per share

- 2019-04: EUR 51.95 per share

- 2019-05: EUR 39.02 per share

- 2019-06: EUR 42.63 per share

- 2019-07: EUR 47.53 per share

- 2019-08: EUR 51.67 per share

- 2019-09: EUR 48.43 per share

- 2019-10: EUR 53.84 per share

- 2019-11: EUR 53.86 per share

- 2019-12: EUR 50.05 per share

- 2020-01: EUR 42.32 per share

- 2020-02: EUR 34.84 per share

- 2020-03: EUR 25.71 per share

- 2020-04: EUR 23.44 per share

- 2020-05: EUR 20.49 per share

- 2020-06: EUR 20.34 per share

- 2020-07: EUR 17.60 per share

- 2020-08: EUR 19.04 per share

- 2020-09: EUR 14.94 per share

- 2020-10: EUR 14.17 per share

- 2020-11: EUR 25.22 per share

- 2020-12: EUR 25.82 per share

- 2021-01: EUR 24.61 per share

- 2021-02: EUR 28.13 per share

- 2021-03: EUR 25.70 per share

- 2021-04: EUR 23.38 per share

- 2021-05: EUR 23.33 per share

- 2021-06: EUR 20.53 per share

- 2021-07: EUR 19.77 per share

- 2021-08: EUR 19.90 per share

- 2021-09: EUR 21.35 per share

- 2021-10: EUR 20.53 per share

- 2021-11: EUR 18.53 per share

- 2021-12: EUR 19.52 per share

- 2022-01: EUR 20.05 per share

- 2022-02: EUR 19.93 per share

- 2022-03: EUR 20.65 per share

- 2022-04: EUR 19.94 per share

- 2022-05: EUR 17.99 per share

- 2022-06: EUR 11.18 per share

- 2022-07: EUR 13.43 per share

- 2022-08: EUR 14.64 per share

- 2022-09: EUR 13.01 per share

- 2022-10: EUR 13.31 per share

- 2022-11: EUR 12.82 per share

- 2022-12: EUR 12.31 per share

- 2023-01: EUR 15.48 per share

- 2023-02: EUR 17.70 per share

- 2023-03: EUR 16.98 per share

- 2023-04: EUR 15.69 per share

- 2023-05: EUR 16.62 per share

- 2023-06: EUR 17.23 per share

- 2023-07: EUR 15.70 per share

- 2023-08: EUR 14.03 per share

- 2023-09: EUR 11.90 per share

- 2023-10: EUR 10.65 per share

- 2023-11: EUR 11.63 per share

- 2023-12: EUR 13.59 per share

- 2024-01: EUR 11.90 per share

- 2024-02: EUR 10.43 per share

- 2024-03: EUR 10.33 per share

- 2024-04: EUR 9.64 per share

- 2024-05: EUR 10.48 per share

- 2024-06: EUR 8.23 per share

- 2024-07: EUR 8.22 per share

- 2024-08: EUR 8.22 per share

- 2024-09: EUR 9.02 per share

- 2024-10: EUR 9.03 per share

- 2024-11: EUR 7.39 per share

- 2024-12: EUR 8.12 per share

- 2025-01: EUR 8.00 per share

- 2025-02: EUR 8.81 per share

- 2025-03: EUR 8.53 per share

- 2025-04: EUR 7.66 per share

- 2025-05: EUR 9.68 per share

- 2025-06: EUR 9.25 per share

- 2025-07: EUR 11.57 per share

- 2025-08: EUR 13.41 per share

- 2025-09: EUR 11.43 per share

- 2025-10: EUR 11.57 per share

- 2025-11: EUR 10.55 per share

- 2025-12: EUR 11.56 per share

- 2026-01: EUR 10.81 per share

- 2026-02: EUR 12.30 per share

- 2026-03: EUR 8.56 per share

- 2026-04: EUR 9.06 per share

- 2026-05: EUR 11.73 per share

- 2026-06: EUR 13.67 per share

- 2026-07: EUR 12.01 per share

- 2026-08: EUR 11.61 per share

- 2026-09: EUR 11.64 per share

- 2026-10: EUR 10.59 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 62.27 per share, central EUR 64.24 per share, high EUR 66.87 per share

- FY2017: low EUR 52.15 per share, central EUR 53.80 per share, high EUR 56.00 per share

- FY2018: low EUR 47.61 per share, central EUR 50.11 per share, high EUR 53.44 per share

- FY2019: low EUR 52.61 per share, central EUR 55.15 per share, high EUR 58.52 per share

- FY2020: low EUR 68.08 per share, central EUR 69.11 per share, high EUR 70.48 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.