On July 4, 2025, Deutsche Bank maintained its "Hold" rating for Air France-KLM (OTC:AFLYY), with the stock price at $1.23. Deutsche Bank also raised the price target for Air France-KLM from EUR 8.50 to EUR 10. This reflects a cautious yet optimistic outlook on the company's future performance.
Air France-KLM is making strategic moves to strengthen its position in the European airline market. The company plans to acquire a 60.5% stake in Scandinavian airline SAS, up from its current 19.9% stake. This acquisition is part of a broader strategy to consolidate Europe's fragmented airline sector, enhancing competitive strength against rivals.
The acquisition of SAS is expected to unlock significant synergies between the two airlines. Air France-KLM aims to leverage the successful turnaround of SAS and the positive outcomes from their commercial cooperation initiated in 2024. This move is anticipated to strengthen the Group's presence in the Scandinavian market and enhance value delivery to shareholders.
The stock has fluctuated between a low of $1.18 and a high of $1.23 today. Over the past year, AFLYY has reached a high of $1.25 and a low of $0.70, with a market capitalization of approximately $32.3 billion.
The transaction to increase Air France-KLM's stake in SAS is subject to regulatory approvals and is expected to be completed in the second half of 2026. This strategic acquisition is a key component of Air France-KLM's plan to enhance its competitive edge and deliver greater value to its shareholders.
