Air France-KLM Shares Bounce Back 2.34% After a 17% Drop Over Seven Days

Current Trading Status

Air France-KLM shares are trading at 10.50 euros mid-morning, up from the previous day's close of 10.26 euros. However, this rise only compensates for a fraction of the decline recorded over the last seven sessions, during which the stock lost more than 17%. Over three months, the performance remains negative at -5.19%, although it still shows a gain of 17.53% over one year. Technically, the price is in a critical zone. It is approaching the support threshold at 10.24 euros, tested during recent declines, while the 50-day moving average, at 11.55 euros, now acts as a significant intermediate resistance. The RSI, at 38, signals proximity to the oversold zone, which may partly explain the recovery movement observed this morning.

Challenges in the Energy Environment

The Franco-Dutch group is dealing with a significantly deteriorated energy environment since the beginning of the week. Military operations in Iran have pushed Brent crude beyond 80 dollars a barrel, a surge of nearly 10%, while European natural gas has jumped by about 25%. Moreover, the rerouting around the Strait of Hormuz by major shipping companies increases global logistical costs. As kerosene represents one of the most significant cost items for airlines, this surge in energy prices directly impacts the cost structure of Air France-KLM, as well as the recent closure of airspaces. The sharp correction of the stock in recent days largely reflects the market's integration of this new risk. The next identified catalyst remains the publication of the quarterly accounts at the end of April, which will assess the concrete impact of this rise on the company's operational margins and its fuel hedging policy.