Air France-KLMAFRAF 69 Gross Margin % is 20.07% as of Mar. 2026, which is 13% below its 10-year median of 23.11. GuruFocus rates AFRAF with a GF Score™ of 69/100 and a GF Value™ of $11.67 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 985 Transportation companies, Air France-KLM ranks better than 54.52% on this metric.
The historical rank and industry rank for Air France-KLM's Gross Margin % or its related term are showing as below:
AFRAF'
s Gross Margin % Range Over the Past 10 Years
Min: -9.05 Med: 23.11 Max: 25.17
Current: 22.89
During the past 13 years, the highestGross Margin % of Air France-KLM was 25.17%. The lowest was -9.05%. And the median was 23.11%.
AFRAF's Gross Margin % is ranked better than 54.52% of 985
companies
in the Transportation industry
Industry Median: 20.42
vs AFRAF: 22.89
Air France-KLM had a gross margin of 20.07% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Air France-KLM was 0.00% per year.
Air France-KLM (OTCPK:AFRAF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Air France-KLM had a gross margin of 20.07% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Air France-KLM Gross Margin % Related Terms
Air France-KLM Gross Margin % Historical Data
* Premium members only.
The historical data trend for Air France-KLM's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Airlines subindustry, Air France-KLM's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Air France-KLM Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Air France-KLM's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Air France-KLM's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Air France-KLM (AFRAF) has a Gross Margin % of 20.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Air France-KLM and its competitors. This is 13% below median its historical median of 23.11. According to the industry distribution chart, Air France-KLM ranks #448 out of 985 companies in the Transportation industry, placing it in the top 45.5%.
Is Air France-KLM's Gross Margin % too high?
Air France-KLM's current Gross Margin % of 20.07% is 13% below median its 10-year median of 23.11. The Transportation industry median Gross Margin % is 20.42. Air France-KLM's value of 20.07% is 1.7% below this industry median. Based on the distribution chart, Air France-KLM ranks #448 out of 985 companies in the Transportation industry, which is above the industry midpoint. Overall, Air France-KLM has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Air France-KLM's Gross Margin % compare to DAL and UAL?
According to the Transportation industry distribution chart, Air France-KLM ranks #448 out of 985 companies for Gross Margin %. This puts Air France-KLM in the upper half of its industry. The industry median Gross Margin % is 20.42. Air France-KLM's value of 20.07% is 1.7% below this benchmark. While the company's 10-year median is 23.11 vs. the industry median of 20.42, Air France-KLM has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air France-KLM's current Gross Margin % of 20.07% is 1.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Air France-KLM and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air France-KLM's current Gross Margin % is 20.07%, which is 13% below median its own 10-year median of 23.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air France-KLM stock overvalued right now?
Based on GuruFocus' analysis, Air France-KLM (AFRAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $11.67, compared to a current price of $13.38 — trading 14.7% above its estimated fair value. The current Gross Margin % is 20.07%, which is 13% below median its 10-year median of 23.11 and 1.7% below the Transportation industry median of 20.42. Air France-KLM's overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Air France-KLM (AFRAF), the current Gross Margin % is 20.07% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Air France-KLM (AFRAF) Overvalued in 2026?
Based on GuruFocus' analysis, Air France-KLM stock appears to be overvalued.
The current stock price of $13.38 is trading 14.7% above its estimated GF Value™ of $11.67.
GuruFocus considers Air France-KLM to be Modestly Overvalued.
Key valuation signals for AFRAF:
Gross Margin %: 20.07% (13% below median its 10-year median of 23.11)
GF Value™: $11.67 vs. price of $13.38 (14.7% above fair value)
Industry Position: 1.7% below the Transportation median (#448 of 985)
No single metric tells the full story. See the AFRAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 for 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.
69GF Score
Get the complete analysis for AFRAF
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