Air France-KLM: Oddo BHF reduces TP

(CercleFinance.com) - Oddo BHF maintains its 'neutral' rating on Air France-KLM shares, with a target price reduced from E10 to E9.


On the unit revenue front (RASK), the environment seems to be better oriented than our initial expectations, the analyst says. Specifically, Oddo BHF expects RASK to reach +1.5% in Q4 24 and +0.1% in 2025.

However, the broker points to a "disappointment" on unit costs (CASK), with KLM in particular reporting +8.4% in Q3. This level of cost overruns (maintenance in particular) will persist at least until the end of Q4, but will remain visible well into 2025, the analyst believes.

While the demand environment remains solid (and may even be stronger than our initial expectations), Air France-KLM is still unable to regain control of its CASK, whether for internal or exogenous reasons, it concludes.


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