How to buy Air France-KLM shares (2024) – invest in KLM
Do you want to buy Air France-KLM stocks? In this comprehensive analysis, you can read everything you need to know about investing in Air France-KLM shares.
Do you consider buying Air France-KLM stocks for the long term? Do you have confidence that this massive company will continue to grow? Then you can certainly consider an investment!
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What is the current stock price of Air France-KLM?
Corporate information of Air France-KLM
Below you can see the most important corporate information of Air France-KLM.
Stock market prices of Air France-KLM over the last 5 days
In the table below, you can see the stock market prices of Air France-KLM from the last 5 days:
Why might it be smart to buy Air France-KLM stocks?
Two brands
Air France-KLM operates two separate brands, namely Air France and KLM. This allows the company to perfectly cater to both the French and Dutch markets. Both brands resonate well with a different target audience, and by keeping them separate, the company can attract many passengers.
Economies of scale
By merging the companies, numerous costs are saved. Processes are improved, and both companies can learn from each other. Do you think this will lead to better results at Air France-KLM? Then it can be interesting to buy the KLM stocks.
A growing target audience
The level of prosperity worldwide increases. As a result, an increasing number of people take the plane to go on holiday. When the total number of passengers increases, the market size also increases. This gives Air France-KLM more options to sell flights, and enables the company to increase its profitability.
Too big to fail
Small businesses simply go bankrupt when things are not going well with the company. This does not seem to be the case for Air France-KLM. When the company ran into trouble due to the corona pandemic, both the Dutch and French governments stepped in.
This reduces the risk of an investment in the company. However, if the government decides to nationalize the company in the future, you still run the risk of losing a lot of money with your investment in Air-France KLM.
Sustainability
Air France KLM focuses on improving the sustainability of its flights. This also allows the company to appeal to environmentally conscious investors.
Growing cargo
Air-France KLM is becoming increasingly active in transporting cargo. If Air-France KLM manages to capture more market share here, the profitability of the company can increase.
Diverse network
Air-France KLM has an excellent reputation. With Air-France KLM’s network, passengers can fly to many destinations, which lowers the investment risk, as a decrease in popularity in some destinations can be offset by an increase in popularity in other destinations.
What are the risks of investing in Air-France KLM stocks?
Oil prices
A major risk for Air-France KLM’s stock price is oil prices. Aeroplanes naturally consume a lot of oil. When prices rise, the costs for Air-France KLM increase significantly, which puts pressure on the company’s margin. When oil prices rise, you often see that the stock price of an airline like Air-France KLM decreases.
The environment
The environment receives increasing amounts of attention. Flying is not exactly a sustainable way to travel. Governments are therefore increasingly trying to discourage flying. At the same time, governments more frequently promote alternative modes of transportation such as trains.
Currently, flying is still heavily subsidized. For example, kerosene is not taxed worldwide. If this changes in the future, it could significantly increase the price of flying. Governments also consider introducing additional taxes on flying, which could reduce the number of people who take the plane.
In 2023, a new flight tax will be introduced in the Netherlands: passengers will then have to pay an additional tax on each flight ticket. This could further put pressure on the Air-France KLM stock price.
Shame of flying
Airlines also fight against the trend of the shame of flying. Flight shame is a feeling of shame that people experience when they travel somewhere by plane. The negative consequences of flying become increasingly clear, and therefore, there are groups of people who refuse to fly. Air-France KLM will have to deal with this: flying should not become the new smoking.
Competition
Competition is also a major risk for Air-France KLM. Air-France KLM distinguishes itself by offering better service than many other airlines. However, budget airlines often offer tickets much cheaper. Many people prioritize price, and as a result, Air-France KLM may lose customers.
KLM, for example, responds to this by making checked baggage optional on long flights. This lowers ticket prices for people travelling without baggage. Do you think that these types of strategies are sufficient to stay ahead of the competition? Then it may be attractive to buy Air-France KLM shares.
Infrastructure limitations
The growth of Air-France KLM is limited by infrastructure. In some countries, there simply isn’t enough space for more flights. Residents frequently protest against further expansions of airports. As a result, even with a growing market, the number of flights cannot increase.
Pandemic
Problems with the global economy as a whole can put significant pressure on the Air France-KLM stock price. This was seen, for example, during the COVID-19 pandemic in 2020. Due to restrictions on travel, KLM was unable to fill its planes, which caused the company to lose millions of euros daily. Airlines like Air France-KLM are vulnerable to these types of developments in the future.
Government Influence
Both the Dutch and French governments are major shareholders in Air France-KLM. In 2020, both governments also provided state aid to the company to survive during the pandemic. This has resulted in a strong increase in the influence of these governments within the company.
Many left-wing political parties want to restrict air travel, which is obviously not good for the company’s profitability. Therefore, it is important to keep an eye on these developments if you would like to buy Air France-KLM shares.
Dilution
Air France-KLM has a weak financial position due to the pandemic. As a result, the company may have to issue new shares. Air France-KLM will also have to take out new loans, which leads to dilution and a reduction in future profitability. Investing in Air France-KLM stocks is therefore risky.
Decrease in Business Travellers
During the pandemic, more and more companies discovered that it is possible to conduct meetings online. Even after the pandemic, people are expected to fly less frequently for work meetings. Business class tickets generate significant revenue for an airline like Air France-KLM, which makes this decreasing trend a risk.
What are Air France-KLM’s biggest competitors?
- Delta Air Lines
- United Airlines
- Lufthansa
- Emirates
- Qatar Airways
- First, open an account with a reliable broker where you can buy Air France-KLM shares
- Complete the steps to activate your account and then deposit money into your account
- Select the Air France-KLM share and enter the amount you want to invest
- Click buy to send the order directly to the stock exchange
- Remember to regularly track your results
About Air France-KLM
Air France-KLM is part of SkyTeam, which includes many other well-known airlines. This makes it one of the largest networks of flight hubs in the world. Together, the airlines transport well over 384 million passengers with over 13,000 daily flights.
The shares of Air France-KLM are listed in Amsterdam, Paris, and New York. Air France-KLM makes money in three ways:
- Transporting passengers
- Transporting cargo
- Performing repairs
For cargo transport, Air France-KLM is ranked first worldwide. The combination of Air France Industries and KLM Engineering & Maintenance also performs well in maintenance. They not only maintain their aircraft, but also those of more than 150 other parties.
Do you think this enormous airline will continue to grow in the future? Then it may be attractive to invest by buying Air France-KLM shares.
Origin of Air France-KLM
Air France-KLM was formed in 2003 through a merger of Air France and KLM. This created an entirely new structure under a new holding company, Air France-KLM, which consists of the two airlines, namely KLM and Air France.
The intention is that the brand names Air France and KLM will be retained for a few more decades before they possibly merge into one brand name that will become known worldwide.
Headquarters
The headquarters of the new holding company is in Paris, but KLM will continue to operate under Dutch law. This allowed the company to maintain its landing and overflight rights.
Due to the takeover, KLM has also joined SkyTeam, an alliance of cooperating airlines.
The future of aviation in Europe
According to experts, there is only room for three major airlines and one or two cheaper airlines in European airspace. The rest of the smaller airlines will merge or be taken over by larger companies to survive.
At the end of 2007, Air France-KLM fully acquired Belgian VLM. VLM will continue to operate as an independent airline. Later in 2008, Martinair was also fully acquired.
The Air France-KLM holding includes:
- Air France, including Brit Air, CityJet, Régional and Transavia.com France underneath it
- KLM, including KLM CityHopper, Transavia.com and the rest of Transavia.com France shares underneath it
- Air France-KLM Cargo including Air France Cargo, KLM Cargo, Martinair Cargo underneath it
- Additionally, the holding is the partial owner of Kenya Airways, Alitalia, Airlinair, CCM Airlines, CCM Airlines, Air Tahiti, Air Mauritius, Royal Air Maroc and Air Calédonie.
Do you think all these brand names contribute to the results of Air-France KLM? Then it may be interesting to invest in the shares!
Air France-KLM is a popular airline that operates in 90 countries. The company also takes the necessary steps to make its operations more sustainable.
However, investing in Air France-KLM stocks is risky. Recently, the stock price has declined significantly. New rules from European governments make it increasingly difficult for the company to operate profitably. Additionally, the company was forced to issue new shares, which is negative for existing shareholders.
Investing in Air France-KLM shares is therefore very risky. It is important to thoroughly research whether it is currently wise to buy Air France-KLM shares. Furthermore, do not forget to compare Air France-KLM with competitors whose shares you can also buy.
