Air France-KLM Shares Plunge 7% Breaking Key Technical Support
On Tuesday, Air France-KLM shares faced a sharp decline, dropping nearly 7% during the session amidst a significant rise in energy prices due to geopolitical tensions in the Middle East. The stock is now trading around 10.37 euros, breaking through the technical support level previously identified at 10.42 euros. The airline has now fallen more than 21% over the past seven days.
Sudden Surge in Oil Prices Exerts Major Pressure on Airline
The abrupt rise in crude oil prices, with Brent reaching $80.14 a barrel this Tuesday, poses significant pressure on the airline, especially as part of the airspace remains closed. Jet fuel is one of the major operational expenses for airlines, and any spike in oil prices mechanically erodes their margins. This surge is directly linked to military operations in Iran and the bypassing of the Strait of Hormuz by major shipping companies, which increases global logistical and supply costs. Meanwhile, European natural gas (TTF) has risen by nearly 25%, adding to the tensions across the entire energy market. For Air France-KLM, whose first quarter 2026 results are expected on April 30, this deterioration in the energy context comes as the stock had already declined by more than 7% over three months. The annual performance, still positive at +17.7%, is now significantly reduced by this accelerated bearish phase.
Technical Analysis Shows Break Below Key Support Level
From a technical standpoint, the Air France-KLM stock price has breached its support level at 10.42 euros during the session, a level that was considered a reference floor for traders. The stock is now trading well below its three main moving averages: the 20-day moving average at 12.12 euros, the 50-day at 11.58 euros, and the 200-day at 11.24 euros. This positioning below all these benchmarks indicates a bearish momentum established across all time frames. The RSI, an indicator that measures the speed and magnitude of price movements, is at 42, indicating selling pressure but not yet reaching the oversold zone (below 30). This level theoretically allows further room for decline before a potential technical rebound could be considered. The next significant resistance is at 13.14 euros, more than 26% above the current price, illustrating the extent of the losses in recent weeks.
