Air France-KLM’s stock advanced 2.6% to €11.93 on Tuesday, paring losses from a prior 12% drop tied to Middle East tensions. The Paris-based carrier’s shares had fallen sharply after the escalation of the Iran crisis in late July, but the latest move reflects analyst reassessment following the company’s second-quarter results released late last month.
Kepler Cheuvreux upgraded Air France-KLM to Hold from Reduce, citing an improved financial outlook. The brokerage kept its price target unchanged at €11.50, noting that absent a further escalation in regional conflicts, the current valuation aligns with the company’s fundamentals. The upgrade followed a 20% upward revision to the broker’s current-year profit estimate, while mid-term forecasts were adjusted modestly.
Air France-KLM reported group revenue of €9.3 billion for the second quarter, up nearly 10% year-over-year. The increase was supported by strong performance in premium and cargo segments, which helped offset elevated fuel costs. The results exceeded consensus expectations on both revenue and earnings.
The broader market showed mixed signals. France’s CAC 40 index moved within a narrow range and ended slightly lower in the prior session, reflecting ongoing uncertainty tied to potential U.S. sanctions on Iran and fluctuations in global oil prices. Meanwhile, U.S. equities advanced modestly, with the S&P 500 up 0.2% and the Nasdaq gaining 0.6%. European investors also monitored signals ahead of the Jackson Hole symposium and potential policy cues from the European Central Bank.
