Air France-KLM Shares Surge 7% After Hitting a Critical Low
Air France-KLM stock soared this Wednesday, April 1st, marking the highest gain in the SBF 120, which rose 2.14% during the session. This rebound occurred after the share price had hit its support threshold at 8.56 euros in the previous session, following a quarter marked by a decline of over 20%.
Significant Recovery Mid-Session
Air France-KLM shares traded at 9.16 euros midday, up 7.06% from Tuesday's close. This surge follows a period of significant correction: the stock lost nearly 20.78% over the past three months, falling well below its 50-day and 200-day moving averages, which stand at 10.76 and 11.29 euros, respectively. Yesterday, the share price was exactly at its technical support of 8.56 euros, from which the rebound was triggered. The RSI, an indicator measuring the momentum of a stock over 14 days, had dropped to 31, at the border of the oversold zone (below 30). This level indicates a bearish excess that often precedes a corrective upward movement. The lower Bollinger Band, at 8.38 euros, was not breached, which may have provided additional safety net for the stock. Despite the magnitude of today's movement, the price remains distant from its resistance at 13.14 euros, placing the rise within the context of a partial recovery rather than a confirmed trend reversal.
Tense Sectoral Context for Airlines
The sectoral context remains particularly tense for airlines. The Brent crude oil price crossed the $115 mark on Monday, March 30, up about 10% in one session, due to military escalation in the Middle East and the involvement of Iran-backed Houthis. The deployment of American military reinforcements in the region fuels fears of lasting disruptions in crude supply. As jet fuel represents one of the main cost items for an airline, this surge in oil prices directly impacts the sector's margins. Today - for now - there is rather a hope for relaxation and an end to the conflict dominating after new announcements from Donald Trump. Meanwhile, aerospace and defense stocks are also experiencing renewed interest during the session: Airbus is up 3.36% and Safran by 3.44%. The CAC 40, up 2.12% during the session, supports the overall Parisian market. The next financial appointment for Air France-KLM is set for April 30 with the publication of the first quarter 2026 results, an event that will allow to measure the concrete impact of the rise in crude on the accounts of the Franco-Dutch company.
