Air France-KLM shares climbed 2% in early trading in Paris on Tuesday after Kepler Cheuvreux upgraded its recommendation to Hold from Reduce and set a price target of €11.50.
The brokerage also increased its 2024 earnings estimates for the Franco-Dutch airline group by 20%, citing improved second-quarter results. Kepler’s medium-term projections were adjusted upward by about 1%, though its estimates remain modestly below the Visible Alpha consensus by a low-to-mid single-digit margin.
Air France-KLM lowered its full-year capacity guidance to a 1% decline for short- and medium-haul flights, with overall group growth projected at 2% to 3%. This marks the second downward revision from an initial forecast of 3% to 5% growth set before the Middle East conflict escalated in February.
The company reported adjusted operating profit of €484 million in Q2, down from €736 million a year earlier but above the €327 million consensus estimate. Kepler analysts noted that, absent a significant escalation in the Iran crisis, the current share price reflects the company’s business outlook.
KLM Chief Executive Officer Marjan Rintel highlighted ongoing structural challenges, including global uncertainty, rising costs, and heightened competition, with the Iran conflict adding further pressure to the airline’s financial position.
