AFRAF - Air France-KLM: Clearing The Runway For A Deep Value Lift-Off

2025-05-27 13:08:31 ET

Summary

• Speculative but Asymmetrical Risk/Reward: Air France-KLM remains a deep value play with high volatility, yet significant upside potential if its recovery plan succeeds.
• Tangible Deleveraging Efforts: Net debt/EBITDA ratio has improved from 6x in 2021 to 1.7x in Q1 2025, with further improvements likely.
• Potential Catalysts: Further balance sheet strengthening, investment grade upgrade, and reinstatement of dividends could unlock institutional interest and re-rate the stock.

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