AF.PA - Air France-KLM SA

Paris - Paris Delayed Price. Currency in EUR
9.12
-0.04 (-0.44%)
As of 12:34PM CEST. Market open.
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Previous Close9.16
Open9.17
Bid0.00 x 0
Ask0.00 x 0
Day's Range9.12 - 9.23
52 Week Range7.46 - 12.73
Volume686,231
Avg. Volume3,055,230
Market Cap3.9B
Beta (3Y Monthly)1.05
PE Ratio (TTM)13.42
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend Date2008-07-14
1y Target EstN/A
  • Reuters

    Kenya Airways chairman calls for professional board after nationalisation

    Kenya Airways must avoid picking a board packed with politically-connected individuals after it is renationalised in order to ensure future success, its chairman said on Tuesday. The loss-making airline, which is 48.9% government-owned and 7.8% held by Air France-KLM, was privatised 23 years ago but sank into debt and losses in 2014. Chairman Michael Joseph said the requirement for professionals to be put in charge of the airline is being built into draft laws that will guide the renationalisation.

  • Barrons.com

    Crude Prices Are Surging and Stocks Are Falling After Attack on Saudi Oil Field

    Oil prices have surged and stocks have fallen after drone attacks on two Saudi Arabian crude facilities on Saturday hit supply and ramped up geopolitical tensions.

  • Financial Times

    British Airways has no easy route out of pilot pay dispute

    Known for his 1,000 yard stare, Willie Walsh, chief executive of British Airways’ owner, IAG, is no stranger to bitter industrial clashes. He has faced down unions at Aer Lingus, BA and Spain’s Iberia ...

  • Financial Times

    How does British Airways compare with rivals on pilot pay?

    Pilots who are striking at British Airways are better paid than peers at their budget rivals but appear to be less well remunerated than their main European competitors, according to a Financial Times analysis. A starting basic salary for a BA captain is about £75,000, according to Balpa, the pilots’ union. BA said the average salary for a captain was £167,000, with £16,000 of flight allowances on top of this.

  • For Airlines, Making Money Is a Grave Mistake
    Bloomberg

    For Airlines, Making Money Is a Grave Mistake

    (Bloomberg Opinion) -- In the airline business, there’s nothing more damaging to a company’s internal harmony than making a profit. The pilot strikes that have grounded almost all British Airways flights for the next two days are a case in point.Unlike most industrial sectors, the usual state of affairs for airlines is spending vast sums of money for little return (Warren Buffett famously opined that this makes the sector a trap for investors). In one respect, this lousy reputation is actually helpful: Unionized staff won’t drive as hard a bargain for higher wages if they think it might make their employer go bust.Recently, however, the industry has broken with its dismal profit trend, with returns on capital expected to be positive for the fifth year in a row. British Airways parent International Consolidated Airlines Group SA is a good example. Its net profit increased to 2.9 billion euros ($3.2 billion) last year, and the return on invested capital climbed to a very respectable 16.6%, according to the company’s calculation. Hence IAG felt able to return 1.3 billion euros to shareholders in dividends over the past year. Analysts are generally admiring.Even though many BA pilots are paid well, they feel they’ve been shortchanged, and they appear to have the airline over a barrel. Pilots are still indispensable if you want to take off or land a plane. And they can take advantage of BA’s public image being tainted recently by various IT and customer data snafus. That’s fed the perception that the quality of BA’s service isn’t what it was (the airline is celebrating its centenary but there’s little talk anymore of it being “the world’s favorite airline”). Pilots are probably betting that the airline will blink first to spare further damage to its image.Despite the admiration of equity analysts, investors have cause to feel aggrieved, too. BA’s strong profit and disciplined capital allocation haven’t translated into a high share price. The stock has tumbled by one-third over the past year. IAG is valued at just four times its annual earnings, a level that typically indicates a profit collapse on the horizon. The share price to earnings multiple is worse than that of most airline peers. Even Europe’s maligned carmakers are held in more esteem by shareholders.And labor strife isn’t the reason for the company’s unpopularity in the stock market. This week’s strike will cost it about 80 million pounds, just 4% of expected yearly earnings. Rather, investors seem preoccupied by the very real possibility of a no-deal Brexit. Demand could suffer if Britain enters a recession and the pound loses even more of its buying power overseas. U.K. customers account for roughly one-third of IAG’s revenue.Furthermore, IAG is based in Spain and it will have to stay compliant after Brexit with the European Union rule that requires the continent’s airlines to be majority-owned by EU nationals. IAG has been pretty vague on this subject but it insists Europe’s national regulators are happy with its arrangements. It also insists that no-deal Brexit would have “no significant long-term impact” on the business.Investors don’t seem ready to believe the company, and who can blame them? In an update on Monday, BA’s rival Air France-KLM sounded gloomy about recent demand for air travel. This is a bad time for the British airline’s repeated bouts of self-harm.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • European airlines skid after Air France-KLM warning
    MarketWatch

    European airlines skid after Air France-KLM warning

    Shares of Air France-KLM on Monday nosedived and other airlines weakened in mostly listless European stock markets on Monday.

  • MarketWatch

    Air France-KLM shares skid after warning on weaker-than-forecast bookings

    Air France-KLM shares plunged in early trade on Monday as the airline said "close-in bookings in the peak travel period are weaker than foreseen in view of softening macro-economic environment." The airline reported a 1.2% increase in passenger traffic on a 1.6% rise in capacity in August. The stock fell over 7% in early Paris trade. Mark Simpson, an analyst at Goodbody Stockbrokers, said consensus operating profit forecasts of 1.3 billion euros "will likely move lower on the implied implications for yields on weaker close in bookings." The guidance had been for stable pricing for the network airlines.

  • Reuters

    UPDATE 1-Prosecutors appeal against dropping of Air France charges over 2009 crash

    French prosecutors appealed on Friday against a decision by magistrates not to prosecute Air France over the 2009 crash of a passenger aircraft flying from Rio de Janeiro to Paris in which all 228 on board died. Prosecutors had recommended that Air France stand trial over the crash but magistrates overruled the prosecutors and dropped the charges. Lawyers representing families of victims had also signalled their intention to appeal after the magistrates decision this week.

  • Reuters

    UPDATE 2-French judges drop charges against Air France over 2009 crash, blame pilots

    French judges have dropped charges against Air France and Airbus over a mid-Atlantic plane crash in 2009 that killed all 228 people on board, blaming the pilots for losing control of the plane. In their conclusions, seen by Reuters, the judges said the pilots of the Airbus A330 had failed to process all the warnings and instrument readings provided by the aircraft. The judges overruled the prosecutors investigating the case, who had recommended that Air France stand trial over the crash in July.

  • Financial Times

    French court drops inquiry into Air France crash of 2009

    French judges have dropped charges against Air France and Airbus over an air crash in 2009 that killed all 228 people on board, putting the emphasis on human error for the loss of control of the plane. 216 passengers and 12 crew members died, making the crash the deadliest in the history of Air France.

  • Reuters

    UPDATE 1-Schiphol hit by delays, cancellations as KLM ground crews strike

    More than 40 flights were delayed and a dozen cancelled at Amsterdam's Schiphol airport on Wednesday, as KLM ground crews went on strike. A spokesman for KLM, a subsidiary of Air France-KLM , said the airline had cancelled 6 flights as a result of the strike. Other delays and cancellations were due to poor weather and repairs, making landing strips unavailable.

  • Schiphol hit by delays, cancellations as KLM ground crews strike
    Reuters

    Schiphol hit by delays, cancellations as KLM ground crews strike

    More than 40 flights were delayed and a dozen cancelled at Amsterdam's Schiphol airport on Wednesday, as KLM ground crews went on strike. A spokesman for KLM, a subsidiary of Air France-KLM, said the airline had cancelled 6 flights as a result of the strike. Other delays and cancellations were due to poor weather and repairs, making landing strips unavailable.

  • Delays expected at Amsterdam's Schiphol Airport as KLM ground staff strike
    Reuters

    Delays expected at Amsterdam's Schiphol Airport as KLM ground staff strike

    Ground staff for the Dutch arm of Air France KLM SA are set to strike on Monday morning at Amsterdam's Schiphol Airport, likely causing delays and canceled flights, the Dutch union FNV said Saturday. The ground staff will strike from 0600 GMT to 0800 GMT. The strike is not only expected to disrupt KLM flights but also those of Air France, Transavia, Delta and other airlines who are part of the SkyTeam alliance and are served by KLM ground staff at its Schiphol hub.

  • Bloomberg

    Taxing Short, Cheap Flights Makes a Lot of Sense

    (Bloomberg Opinion) -- Germany’s former transport minister (and current senior legislator) Alexander Dobrindt has proposed setting a price floor on air tickets, to eliminate the cheapest offerings from Europe’s ubiquitous discount airlines. The idea probably will be rejected for political reasons, but it’s actually one to consider when it comes to reducing air travel’s climate impact.It’s difficult to tax airline tickets: Taxation is regulated by the 1944 Chicago Convention and a spate of bilateral agreements, and in the European Union, taxes shouldn’t interfere with the workings of a free common market. According to a 2018 report by the Dutch consultancy CE Delft, it’s legally problematic, if not impossible, to tax flights based on fuel consumption, although it might be possible to set up tax brackets based on various emissions. In any case, almost every new ticket tax is challenged in the courts. The rulings have shaped the levies as they exist today.Airline ticket taxes are often flat or differentiated based on baffling criteria. In a number of European countries, the levies on domestic and intra-EU flights and lower than on those outside the EU. In Germany and Austria, the longer the flight, the higher the tax. The so-called eco-tax France plans to impose next year (over the strong  objections of Air France) will be higher on business-class tickets than on economy-class ones, and it’ll also make the EU-non-EU distinction.From an environmental point of view, none of this makes a lot of sense. Emissions per passenger don’t depend on whether the flight is domestic or international, intra-EU or extra-EU. A business class passenger, of course, occupies more space on a flight and thus theoretically accounts for a higher share of emissions, but at the maximum rate of 18 euros ($20) per ticket, which France plans, airlines will hardly be encouraged to remove business class sections from flights.A tax scale that goes up with the distance traveled is plainly a mistake, too. Of course, the longer the flight, the higher the absolute amount of carbon emitted per passenger. But the idea of a smart environmental levy on airfares shouldn’t be to discourage long-distance travel, because it’s rather pointless. For people planning an intercontinental trip, or even one across Europe, there’s no reasonable alternative to flying. Climate activist Greta Thunberg traveled from the U.K. to the U.S. by sailing yacht earlier this month, but two crew members had to fly there to bring the boat back.It’s the shortest flights that a smart tax should discourage. The curve that describes the relationship between distance traveled and carbon emissions per passenger per mile is L-shaped: The highest emissions occur during takeoff and landing. The straightforward approach would be to impose a restrictive tax on flights up to a certain distance, making more climate-efficient trains, buses and, yes, fully loaded cars more competitive. But Dobrindt’s proposal to tax all air tickets priced below 50 euros would largely serve the same purpose: These cheap flights are overwhelmingly short-haul. According to an analysis performed in 2011 by Brighter Planet, California-based organization that calculates emissions and looks for ways to reduce them, European and U.S. low-budget airlines are driven down the carbon efficiency scale by the relatively short distances they typically fly.There’s no justification for flying, say, from Brussels to London, from Barcelona to Madrid or from Rome to Milan – it’s faster by train when airport waiting times are taken into consideration. But these are often the flights with the cheap tickets that compete with train and bus fares.“I want climate protection instead of predatory pricing,” Dobrindt told the German tabloid Bild. “There should be a price floor on flying and railroads need a value-added tax reduction.”His plan likely won’t fly. The coalition agreement on which the current German government is based rules out raising taxes, and even within Dobrindt’s party, Bavaria’s Christian Social Union, there’s a strong aversion to any tax increases. Besides, the German government, unlike the French one, doesn’t really need additional revenue: It’s consistently running a budget surplus. What it needs is ways to stimulate business activity in the face of a recession – and if  it tries to impose an additional tax on air tickets, it will be attacked for doing the opposite.And of course, whoever dares attack cheap flights will also get pilloried for reducing the mobility of the poor and making life worse for the middle class. Arguments that anyone, rich or poor, should take the train, the bus or the family car for relatively short-haul trips will drown in the chorus of socially motivated disapproval.But something needs to be done about the short flights, and sooner or later governments will need to clamp down on them, boosting the competitiveness of more carbon-efficient modes of transportation. Dobrindt’s idea shouldn’t be discarded out of hand.To contact the author of this story: Leonid Bershidsky at lbershidsky@bloomberg.netTo contact the editor responsible for this story: Tobin Harshaw at tharshaw@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Leonid Bershidsky is Bloomberg Opinion's Europe columnist. He was the founding editor of the Russian business daily Vedomosti and founded the opinion website Slon.ru.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Benzinga

    Air France-KLM And Kuehne + Nagel Create Direct Connection

    Air France-KLM Martinair Cargo and logistics giant Kuehne + Nagel have taken steps to fully integrate their electronic booking processes. In a recently concluded exercise, the two companies enabled total ...

  • Reuters

    UPDATE 1-Kenya Airways' problems continue as first-half losses double

    Kenya Airways, which is being renationalised to save it from mounting debts, saw its first-half pretax loss more than double from a year earlier to 8.56 billion Kenyan shillings ($83 million), its results statement showed on Tuesday. Kenya's parliament voted in July to renationalise the loss-making airline, which is labouring under a mountain of debt and has had three changes of chief executive in the past five years as it struggles to compete with regional rivals. The government plans to buy out minority shareholders including Air France-KLM's 7.8% stake.

  • Reuters

    UPDATE 2-Dozens of Airbus A380s face urgent checks after cracked part dug from ice

    Investigators probing an engine explosion on an Air France A380 in 2017 are studying a possible manufacturing flaw in a recently salvaged cracked part in a move likely to trigger urgent checks on dozens of Airbus superjumbos, people familiar with the matter said. The titanium alloy part is the centrepiece of a 3-metre-wide fan on engines built for the world's largest airliner by U.S.-based Engine Alliance, co-owned by General Electric and United Technologies unit Pratt & Whitney. It had sat buried in Greenland's ice sheet since September 2017 when one of four engines on Air France flight 66 abruptly disintegrated en route from Paris to Los Angeles.

  • Dozens of Airbus A380s face urgent checks after cracked part dug from ice
    Reuters

    Dozens of Airbus A380s face urgent checks after cracked part dug from ice

    Investigators probing an engine explosion on an Air France A380 in 2017 are studying a possible manufacturing flaw in a recently salvaged cracked part in a move likely to trigger urgent checks on dozens of Airbus superjumbos, people familiar with the matter said. The titanium alloy part is the centrepiece of a 3-metre-wide fan on engines built for the world's largest airliner by U.S.-based Engine Alliance, co-owned by General Electric and United Technologies unit Pratt & Whitney . It had sat buried in Greenland's ice sheet since September 2017 when one of four engines on Air France flight 66 abruptly disintegrated en route from Paris to Los Angeles.

  • Thomson Reuters StreetEvents

    Edited Transcript of AF.PA earnings conference call or presentation 31-Jul-19 7:30am GMT

    Q2 2019 Air France KLM SA Earnings Call

  • Skift Global Forum Preview: Air France-KLM CEO Ben Smith Reveals How He’s Winning Over Labor
    Skift

    Skift Global Forum Preview: Air France-KLM CEO Ben Smith Reveals How He’s Winning Over Labor

    Since Air France and KLM merged in 2004 to create what was then the world's largest carrier by revenue, a series of CEOs has tried to keep the peace in Paris and Amsterdam. These executives allowed managers in each country to operate the carriers as they pleased while begging French unions to accept any deal […]The post Skift Global Forum Preview: Air France-KLM CEO Ben Smith Reveals How He's Winning Over Labor appeared first on Skift.

  • Nissan's Loveless Renault Marriage Is Laid Bare
    Bloomberg

    Nissan's Loveless Renault Marriage Is Laid Bare

    (Bloomberg Opinion) -- Even after a relationship is dead, couples often go through the motions of remaining in a marriage. That’s the best way to characterize what’s left of the alliance between Renault SA and Nissan Motor Co. Renault must sell down its 43.4% stake in its Japanese partner to 5%-10% and both sides should “invest in new ventures,” Nissan’s Senior Vice President Hari Nada wrote in an e-mail to colleagues, saying this was the view of independent director Masakazu Toyoda, the Wall Street Journal reported at the weekend. In Toyoda’s view, the two sides should come up with some sort of joint venture in order to show that the alliance isn’t dead, giving Renault Chairman Jean-Dominique Senard the room to unwind the cross-shareholdings that underpin the relationship, the Journal reported.To judge by the picture this paints of internal discussions within Nissan, the Japanese company is only interested in maintaining the appearance of an alliance with Renault and its 15% shareholder, the French government. Making a joint commitment to reaffirm a bond isn’t uncommon for people in a failing relationship, but it’s no way to run a business.If Nissan is sincerely committed to a joint venture, the first thing it should do is identify a strategic opportunity, work out what synergies it would bring, and find a way to operate it. Forming a JV just to get your partner to agree to the terms of a divorce puts your employees’ careers at the mercy of these corporate maneuverings.For those at Renault most committed to the logic of the merger with Fiat Chrysler Automobiles NV that was declared dead in June, this might count as good news. Senard has publicly talked down the prospect of the tie-up being renewed, but this suggests that Renault has been looking for ways to revive the alliance behind the scenes.A tie-up between European giants, in the manner of the mergers that created Airbus SE, Air France-KLM, and IAG SA, seems a far more congenial outcome than the bitter remains of the Renault-Nissan marriage. Fiat Chrysler’s strong business in SUVs and North America would also complement one of the most obvious shortcomings that Renault would suffer if it lost its alliance with Nissan.At the same time, the writing is on the wall for any further integration between France and Japan. Nissan seems committed to preventing any further convergence. Whether or not a Potemkin village JV is agreed to, the sort of ambitious activities pushed in the Carlos Ghosn era – development of modular designs shared between Renault and Nissan vehicles, or moving the manufacturing of the Nissan Micra from the Japanese company’s Chennai plant to a Renault factory north of Paris – are unlikely to see the light of day again. The more likely outcome would be something eventually resembling the far more limited cooperation between Daimler AG and the alliance.Does it matter whether Renault and Nissan are married, or merely cohabiting? In many ways, the alliance has been dead since Ghosn and his deputy Greg Kelly were arrested by Japanese authorities last November. As my colleague Anjani Trivedi has written, Nissan in particular may be better off resolving its substantial problems on its own rather than getting involved in the complexity of another multi-billion dollar cross-border merger.Still, the risk for Nissan is that by turning away from its European partnership it will leave itself too small to manage the vast capital expenditures and research and development costs necessary as the global car industry seeks to reverse slumping sales and manage the transition to electric vehicles and greater automation. Ghosn’s pursuit of volume growth at any cost is one reason why Nissan is now plagued with overcapacity and facing drastic job cuts. But the vision he was pursuing before his arrest – of a company as transnational as he is, headquartered in the Netherlands and with operations all over the world, and not especially beholden to either the Japanese or French governments – is now unlikely ever to materialize.That’s a tragedy. A Renault-Nissan alliance free to pursue profitable growth in the interests of the business as a whole, rather than being turned into the plaything of nationalist interests, is the likeliest way for the two companies and their workforces to prosper. If management in Paris and Yokohama are quietly giving up on that future, both companies may live to regret it.A marriage where neither partner is committed is the worst of all worlds. If separation is out of the question, Nissan and Renault need to find a way to make this relationship work.To contact the author of this story: David Fickling at dfickling@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • U.S. gives tentative approval for expanded Delta, Air France, Virgin joint venture
    Reuters

    U.S. gives tentative approval for expanded Delta, Air France, Virgin joint venture

    U.S. Transportation Secretary Elaine Chao granted tentative approval on Friday for an expanded transatlantic joint venture made up of Delta Air Lines Inc, Air France KLM SA and Virgin Atlantic. The expanded joint venture would replace two previously approved arrangements in the U.S.-United Kingdom and U.S.-Continental Europe markets and will allow for additional benefits like more options on European flights, a Department of Transportation statement said. The Department tentatively approved antitrust immunity for the joint venture and will require the carriers to report annually on commercial cooperation efforts and provide a detailed assessment after five years, the statement said.

  • Reuters

    UPDATE 1-U.S. gives tentative approval for expanded Delta, Air France, Virgin joint venture

    The expanded joint venture would replace two previously approved arrangements in the U.S.-United Kingdom and U.S.-Continental Europe markets and will allow for additional benefits like more options on European flights, a Department of Transportation statement said. The Department tentatively approved antitrust immunity for the joint venture and will require the carriers to report annually on commercial cooperation efforts and provide a detailed assessment after five years, the statement said.