Air France-KLM shares fall after CEO announces his resignation

United we stand Alex Ferguson transformed Manchester's Red Devils

United we stand Alex Ferguson transformed Manchester's Red Devils

The government said the French state, the largest shareholder with a 14 percent stake, will not bail out the airline.

The survival of strike-hit Air France is in the balance, according to the country's economy minister.

Air France said on Friday that 13 days of strikes by its staff had already cost it about €300 million ($358 million).

Bank of America reaffirmed a "sell" rating on shares of Air France-KLM in a research note on Monday, February 12th.

More than half of the staff at the French carrier who cast a ballot voted against the offer of a 7 percent salary increase over four years, prompting Janaillac to say he would resign.

The warning follows the resignation of Air France CEO Jean-Marc Janailla on Friday, which signals the suspension of negotiations until new management is appointed.

"Air France will disappear if it does not make the necessary efforts to be competitive", he warned.

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Over the first quarter of 2018, the company posted €269 million in losses, up from €33 million during the same period a year ago.

The airline said 99% of its long-haul flights would operate out of Charles de Gaulle, along with 80% of medium-haul flights from the same airport.

Airline staff are planning further strikes on May 7 and May 8.

Until new management plans are in place, Air France executives lack a mandate to continue negotiations with unions, prolonging the dispute.

Air France-KLM is one of the biggest full service airlines in Europe, which has been suffering from competition by low cost carriers. "I think we can find a way out".

Air France-KLM has an average rating of Hold and a consensus price target of $18.00.

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

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