Air France-KLM Rises 2.57% After Government Announces Debt Relief
Air France-KLM closed up 2.57% at 10.9650 euros on Thursday, January 15, following the French government's announcement of a Covid-19 debt forgiveness that could reach 728 million euros. The stock remains under pressure over the week with a 9% decline, affected by Barclays' downgrade to underweight.
Market Response to Government Debt Relief Announcement
Air France-KLM's shares closed up 2.57% this Thursday, January 15, at 10.9650 euros, an increase of 0.2750 euros from the previous day's close of 10.69 euros. This recovery occurred after the French government confirmed on Wednesday its intention to lighten the group's debt by forgiving Covid-19 related debts amounting to up to 728 million euros. The traded capital share amounted to 0.62%, indicating moderate investor participation in a relatively calm market. Over the past week, however, the stock has fallen by 9%, notably penalized by Barclays' downgrade to underweight on January 14 and ongoing concerns about operational difficulties at subsidiary KLM. Over three months, the decline reaches 6.6%, reflecting investor caution towards the structural challenges of the group. Despite this challenging context, the annual performance remains notable with a 53.1% increase, confirming the recovery that began at the start of 2025.
Technical Analysis and Future Outlook
Technically, the RSI stands at 36, signaling an oversold zone that could favor a technical rebound in the short term. This indicator suggests that the stock has faced significant selling pressure recently, thus creating a favorable context for a recovery. The price is now slightly above the 50-day moving average, positioned at 10.91 euros, confirming a mild mid-term support. The 200-day moving average is at 10.65 euros, a level that the stock still manages to maintain despite recent turbulence. The critical support threshold is at 10.12 euros, a zone that buyers defended during the last sessions. Conversely, the major resistance remains at 12.28 euros, reached at the beginning of January before this week's downturn. The announced debt relief is part of a decision by the European Commission allowing the state to compensate Air France for damages suffered during the Covid-19 crisis. Although symbolic, this measure could strengthen investor confidence in the financial solidity of the group in the medium term, as the net debt stood at 7.8 billion euros at the end of September 2025.
