Oddo BHF reiterates its 'underperform' rating on Air France-KLM and lowers its target price from 9.5 to 8.5 euros, to reflect its new estimates and the research firm's updated parameters.

Following a warning issued by the Franco-Dutch airline earlier this week, the analyst models an adjusted EBIT of 482 million euros (-34.2%) on second-quarter sales of 8.1 billion.

In our view, the recovery of CASK is a prerequisite for a return to the share price", warns Oddo BHF, for whom Air France-KLM is still trading on unattractive multiples compared with its major peers Lufthansa and IAG.

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