Air France-KLM Shares Drop 3.49% at Opening, Dragged Down by Brent at $100
Air France-KLM shares significantly declined this Monday morning, affected by the sharp rise in crude oil prices following the announced American naval blockade against Iran. The share price stood at €9.70 at the start of the session, down 3.49% from last Friday's close. The CAC 40, during the session, dropped 0.87% to 8,187.73 points amid a highly nervous atmosphere.
Impact of the U.S. Naval Blockade on Oil Markets
The announcement by Washington of a naval blockade targeting Iranian ports, effective this April 13, has shocked the oil markets. Brent crude jumped about 8% to cross the symbolic threshold of $100 per barrel, reaching $101.66, while WTI followed a similar trajectory. The Strait of Hormuz, a strategic corridor for a significant portion of global oil, is at the center of this geopolitical escalation.
For Air France-KLM, jet fuel represents one of the heaviest cost burdens. Any sustained increase in crude prices mechanically compresses the group's operational margins, unless the extra cost can be fully passed on to ticket prices, which remains uncertain in a period of increased competition. This Monday, the entire aviation sector is down: Airbus drops 1.82% and Safran loses 1.92% during the session. The publication of the first-quarter results, scheduled for April 30, will be an important test to assess the impact of this situation on the company's accounts.
Recent Stock Performance Amidst Market Volatility
Despite today's decline, the stock has shown a progression of 8.23% over the last seven sessions, indicating a short-term rebound that comes after a 13.7% decline over three months. The current price of €9.70 remains distant from the 50-day moving average of €10.62, indicating a still un-reversed medium-term downward trend.
Regarding Bollinger Bands, the stock is moving in the upper part of the band, at 72% between the lower bound (€8.39) and the upper bound (€10.21), without any overbought signal. The RSI, at 55, remains in a neutral zone, providing no strong directional indication. The support threshold is at €8.56, a level that could be tested if geopolitical tensions and pressure on oil prices were to intensify in the coming days. Over a year, the stock still maintains a positive performance of 30.36%.
