Air France-KLM: Barclays downgrades stock
(CercleFinance.com) - On Wednesday, Barclays downgraded its recommendation on Air France-KLM shares to 'underweight' from 'equal weighting', with a target price lowered from E8.
5 to E7.
In a study of the European airline sector, the broker says it holds the Franco-Dutch carrier's management team and its strategic positioning in high regard, but fears that the current climate of political uncertainty in France will penalize its business.
The broker also notes that the project to turn around the profitability of the KLM subsidiary faces a number of obstacles, ranging from rising airport charges in Amsterdam to a shortage of flight crews, not to mention tense relations with pilots' unions.
Finally, Barclays concludes that the use of hybrid financing tools continues to weigh on the group's balance sheet situation.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5 to E7.
In a study of the European airline sector, the broker says it holds the Franco-Dutch carrier's management team and its strategic positioning in high regard, but fears that the current climate of political uncertainty in France will penalize its business.
The broker also notes that the project to turn around the profitability of the KLM subsidiary faces a number of obstacles, ranging from rising airport charges in Amsterdam to a shortage of flight crews, not to mention tense relations with pilots' unions.
Finally, Barclays concludes that the use of hybrid financing tools continues to weigh on the group's balance sheet situation.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.