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

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

Jean-Marc Janaillac, Chief Executive Officer of Air France-KLM Group, attends a news conference in Paris, France, May 4, 2018. REUTERS/Charles Platiau
PARIS: Air France KLM 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 (US$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 index and a 4 percent fall on the pan-European STOXX 600 Travel & Leisure index .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.(Reporting by Sudip Kar-Gupta; Editing by Richard Lough)
Source: Reuters
 Source : http://www.channelnewsasia.com/news/business/air-france-klm-shares-slump-as-ceo-prepares-to-quit-over-union-pay-row-10209984