Air France strikes continue; 80% of flights to operate May 8

Air France strikes continue; 80% of flights to operate May 8

On Monday, the price of the shares of Air France dived as the CEO of the company did quit and the French Government warned the country's flagship carrier might collapse.

The strike has had an impact of more than?300m euros, as reported by the airline.

The airline said: "Air France deplores the continuation of these strikes even though the period that opens does not allow to pursue any negotiation".

Air France stock closed 9.8 percent lower at 7.30 euros, having earlier traded as low as 6.93.

Janaillac resigned on Friday after striking staff rejected a final pay offer of a 7 per cent wage increase over four years, as they continue to push for a 5.1 per cent increase this year.

Strikes are also continuing to disrupt rail travel this week.

In its latest update Air France said that on May 8 it expects to operate 80 percent of its flight schedule, including 95 percent of its long-haul flights, 75 percent of its medium-haul flights to and from Paris - Charles de Gaulle, and 82 percent of its short-haul flights to and from Paris - Orly and the French provinces.

More news: Express Scripts Holding Company (ESRX) Consensus Earnings Estimates

The strikes had already cost the airline about €300m and pushed its first-quarter results to a €118m loss despite KLM making a €60m profit.

It was the first chance investors had had to respond to chief executive Jean-Marc Janaillac's resignation and comments by France's economy minister.

He also oversaw the launch of Joon, a low cost subsidiary of Air France, and growth in its maintenance business.

Bloomberg reports that the airline group's stock has dropped as much as 14 percent as of Monday, the biggest decline since 2002.

The government of French president Emmanuel Macron is involved in its own ongoing battle with broad swaths of society which are resisting economic reforms.

The French government, which is the national carrier's largest shareholder with a 14 percent stake, has said it will not ride to the rescue and a meeting of Air France-KLM's board has been called for May 15 to decide on a management transition plan.

"Air France will disappear if it does not make the necessary efforts to be competitive", he said on BFM television.

Related Articles