Air France KLM shares slump as CEO prepares to quit over union pay row

Air France KLM (AIRF.PA) shares slumped on Monday after the company’s chief executive said he would resign following the rejection of a pay deal by the airline’s staff.

Air France KLM shares were down by around 12.8 percent at 7.06 euros ($8.42) in early session trading, touching their lowest level since April 2017.

The stock is down by around 50 percent since the start of 2018, underperforming a 3.7 percent gain on the broader Paris SBF-120 .SBF120 index and a 4 percent fall on the pan-European STOXX 600 Travel & Leisure index .SXTP.

Late on Friday, CEO Jean-Marc Janaillac said he would resign after staff rejected a pay deal, plunging the airline into turmoil amid a wave of strikes at its French brand that has so far cost the company 300 million euros.

Airline staff are planning further strikes on May 7 and May 8.

Related Articles

Back to top button