May 7, 2018 / 7:20 AM / 9 months ago

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

PARIS, May 7 (Reuters) - 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 ($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.

$1 = 0.8377 euros Reporting by Sudip Kar-Gupta; Editing by Richard Lough

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