French strikes depress Air France-KLM Q1 earnings

French strikes depress Air France-KLM Q1 earnings

Zacks Investment Research raised shares of Air France-KLM from a "hold" rating to a "buy" rating and set a $19.00 price objective for the company in a report on Thursday, January 4th.

The news comes at an awkward time as Air France-KLM is facing a wave of strikes from workers at Air France who have cost the company approximately $350 million.

Air France-KLM's board will decide on a management transition plan on 15 May, the company said on Saturday, after CEO Jean-Marc Janaillac said he would step down when staff at its French brand rejected a pay deal.

"If Air France does not make efforts to become more competitive, allowing this flagship to be at the same level at Lufthansa and other airline companies, Air France will disappear", Le Maire told BFM television.

Air France-KLM stock traded down $0.73 during mid-day trading on Friday, reaching $9.16.

Air France-KLM SA, together with its subsidiaries, provides passenger transportation services on scheduled flights.

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Air France-KLM has already downgraded its profit and growth expectations for 2018.

The airline, which emerged from a tie-up between Air France and KLM Royal Dutch in 2004, earlier on Friday released quarterly earnings figures, announcing losses for the first three months of the year.

Staff and management at the carrier have been locked in a dispute over pay since February.

Unions said the increase was too little after six years of pay freezes and demanded a 5.1 per cent raise this year instead.

The Air France turmoil has coincided with other strike action as rail workers press on with rolling stoppages to protest President Emmanuel Macron's planned privatization of SNCF, the state-run train operator. Air France-KLM had a negative net margin of 1.13% and a positive return on equity of 38.04%.

French Prime Minister Edouard Philippe has hailed Janaillac's "courageous" decision while calling on both sides "to assume their responsibilities".

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