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

Published 05/07/2018, 03:23 AM
Updated 05/07/2018, 03:31 AM
© Reuters. Jean-Marc Janaillac, CEO of Air France-KLM Group, attends a news conference in Paris
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PARIS (Reuters) - Air France KLM (PA:AIRF) 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.

© Reuters. Jean-Marc Janaillac, CEO of Air France-KLM Group, attends a news conference in Paris

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