Air France-KLM has seen its stock price rise sharply this year, delivering returns of nearly 40% to investors. However, the company’s financial performance over the past three to five years has been inconsistent, with losses reported during that period. In the last month alone, Air France-KLM shares have dropped by more than 12%. Despite these fluctuations, several industry analysts consider the airline undervalued due to its continued strength in premium markets.
The group has expanded significantly on key global routes, with both Air France and KLM increasing their passenger numbers and network reach. Analysts are examining how the airline’s recent financial results relate to this growth.
Recent gains in share prices have been attributed to higher demand, increased pricing power, and improved cost management. These factors have generated profits and cash flow that allow Air France-KLM to pay down debt, reduce interest expenses, and invest in newer aircraft as well as cabin improvements. Digital ticket sales have provided additional flexibility for capacity growth where returns are highest. According to Yahoo Finance, stronger margins improve the balance sheet and make it easier for the company to finance new fleet orders and launch new routes.