Air France-KLM Shares Soar Nearly 9%, Breaking Through €11.74 Resistance
The Franco-Dutch airline's stock makes a spectacular mid-session leap, leading the SBF 120. The surge occurs in an exuberant Parisian market, as Brent crude significantly falls below $90. The company subsequently breaks through a technical barrier that has been monitored for several weeks.
A Nearly 9% Jump Propels the Stock to the Top of the SBF 120
Air France-KLM shares surged by 8.64% to €11.89 at midday, marking the highest rise in the SBF 120. The stock leads ahead of Eramet (+8.29%) and Vicat (+6.73%) in an index that is up by 1.65%. The movement benefits from a significantly more favorable energy environment: Brent crude dropped by 5.17% during the session to $88.29/barrel, following Donald Trump's announcement of the cancellation of planned strikes against Iran and the mention of a possible peace agreement. This decline mechanically reduces the fuel bill for airlines, a factor that had already supported a rebound of 17% in a single week at the end of May. Airbus is up by 3.24% simultaneously, while ADP gains 5.08%. Over a month, the stock now shows a performance of 17.04%, and 27.44% over a year. Today's jump is accompanied by a notable technical breakthrough: the stock broke its resistance at €11.74 during the session, identified as a lock for several weeks, and maintains above it. The price is now 8.84% above its MM20 (€10.92) and 16.75% above its MM50 (€10.18), confirming the medium-term bullish momentum. The RSI at 56 remains in the neutral zone, which leaves room before an overbought configuration.
Valuation Remains Moderate After a 27% Rally Over a Year
Beyond today's movement, the valuation profile remains contained after this performance. According to the consensus of surveyed analysts, the stock is trading at about 3.6 times the earnings of the current fiscal year and 2.4 times those of the next fiscal year, multiples that reflect the market's persistent caution about the airline sector despite the recent trajectory. At the end of May, Morgan Stanley had shifted to a buy rating with a target of €11.50, now surpassed by today's price. Strategically, CEO Benjamin Smith recently expressed openness to a joint offer with the American fund Castelake on EasyJet, although not yet involved. However, the macro environment remains to be monitored. The ECB raised its key interest rates by 25 basis points this June 12, the first increase since September 2023, in response to a return of inflation above the target linked to the energy shock. The trajectory of the barrel, whose geopolitical risk premium remains high as long as tensions in the Strait of Hormuz are not permanently lifted, will be the main reference point for the continuation of the movement. Above €11.74, the stock now operates in clear territory up to its annual highs.
