Air France Shares Drop Sharply As Strikes Continue
May 08 2018
And on Sunday, minister Bruno Le Maire warned Air France could "disappear".
On Friday, the outcome of the negotiations between Air France's leadership and its employees that are on a rolling strike since February, will define the future of the company's CEO Jean-Marc Janaillac, 65, who put his resignation on the line in case of failing to resolve the crisis in the company.
The company had offered a staggered 7 per cent pay increase over four years, with 2 per cent in 2018 and further increases dependent on the airline's financial performance.
Air France-KLM reported a net loss of €269 million ($321 million) in the first quarter of the year.
Air France-KLM shares suffered their biggest one-day fall in a decade on Monday after its chief executive said he would resign following the rejection of a pay deal by the airline's staff.
Air France-KLM shares fell more than 14 percent before recovering some losses to trade down 10 percent at 7.28 euros ($8.68) at 1230 GMT, their lowest level since April 2017.
Air France said Friday that rising expenses for jet fuel plus a stronger euro will add to the burden caused by a string of walkouts by staff fighting for higher wages.
Air France-KLM shares are down nearly 50 per cent since the start of 2018, versus a 3.7 per cent gain on the broader Paris SBF-120 index and a 4 per cent fall on the pan-European STOXX 600 Travel & Leisure index.
Be that as it may, numerous investigators say Air France has lingered a long ways behind with regards to rebuilding and has neglected to address its proceeded with misfortunes.
It has been forced to ground 15 percent of its flights on Monday and 20 per cent on Tuesday.