Air France-KLM is a European network carrier utilizing a hub-and-spoke model. Its two major hubs are Charles de Gaulle Airport in Paris and Schiphol Airport in Amsterdam.
The industry downturn caused by the pandemic has prompted the group to embark on a long-overdue cost-restructuring program that will lead to a leaner cost structure.
Bears
The group’s high levels of debt could result in gross shareholder value destruction.
Air France-KLM is a European airline group engaged in businesses that include passenger and cargo transportation, low-cost operations, and aircraft maintenance. The group has four segments: network, maintenance, Transavia, and other. The network segment derives key revenue that includes the passenger and cargo network, mainly coming from passenger transportation services on scheduled flights with the group's airline code. The company's geographic markets include France, Benelux, Europe, and the rest of the world, with the majority of revenue coming from France, including its overseas division.