Air France-KLM (AFLYY) Receives Consensus Recommendation of "Hold" from Brokerages

Air France-KLM (AFLYY) Receives Consensus Recommendation of

Air France-KLM (AFLYY) Receives Consensus Recommendation of "Hold" from Brokerages

Air France-KLM Group tumbled in Paris trading after the resignation of Chief Executive Officer Jean-Marc Janaillac last week threw Europe's biggest airline into disarray, with strikes continuing and senior politicians warning that the company's survival is at stake.

"We're minority shareholders. those that think that whatever happens the state will come to Air France's rescue and soak up Air France's losses are mistaken", Mr Le Maire said. "Be responsible. The survival of Air France is in the balance".

"That has been proved in the cases of the turnarounds achieved by Iberia and British Airways".

The move coincided with Air France-KLM's release of first-quarter earnings, which showed a net loss of 269 million euros ($322 million), weighed down by three days of strikes during the period which cost about 25 million euros per day according to the company. Close to 85 per cent of flights are likely to run on Monday, the carrier said.

"I accept the consequences of this vote and will tender my resignation to the boards of Air France and Air France-KLM in coming days", he said. Air France-KLM has a 52 week low of $8.63 and a 52 week high of $17.28.

Unions had been calling for a salary hike of 5.1 per cent in 2018 alone, and staff rejected a management pay deal offering 7 per cent wage increase over four years. Janaillac had put his job on the line as workers voted on a pay offer by management, a bet he lost as staff rejected the proposal late on Friday.

"There's reason enough to be anxious", CFDT leader Laurent Berger.

"There is inevitably some pain for staff when structural changes are made, but once that is dealt with, you're left with a much healthier company", said aviation consultant John Strickland.

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