Air France-KLM Shares Drop 2.22% to €9.77 Amid Brent Crude at $111
In the middle of the trading session, the Franco-Dutch airline's stock has fallen by 2.22% to €9.77 in a generally declining Paris market. The SBF 120 is down by 0.85% and the CAC 40 has lost 0.79%, amid a surge in long-term rates and Brent crude maintaining levels above $110. The stock thus extends its weekly decline to -4.29% over seven days.
Brent Above $110 Weighs on European Air Transport
Brent crude is trading around $111 this Monday, after a weekly gain of about 8% and an increase of more than 50% since the outbreak of the war in Iran at the end of February. The Strait of Hormuz remains largely closed, restricting the flow of crude and refined products from the Gulf. This surge mechanically weighs on the costs of air transport, a sector structurally exposed to the price of kerosene. Air France-KLM had indeed warned during the publication of its quarterly accounts on April 30 about an increase in the fuel bill by $2.4 billion for the year, with an impact concentrated in the second quarter. Additionally, the spike in global bond yields further pressures cyclical assets: the yield on the US 10-year Treasury has reached 4.63%, a high since February 2025.
Short Sellers Strengthen and RSI Remains Neutral at 53
According to reviewed statements, cumulative net short positions reach 2.80% of the capital, declared by four funds (last declaration on May 14). The movement has intensified over a month, with an increase of 0.57 points from 2.23%. Capital Fund Management leads with 0.95%, followed by Walleye Capital (0.69%) and Marshall Wace (0.60%). Regarding indicators, the stock price is in contact with its MM20 at €9.76 and remains slightly above the MM50 at €9.63. However, it is significantly below the MM200 (€11.22), with a gap of nearly 13%, indicating a still deteriorated medium-term dynamic. The RSI at 53 is neutral, and the stock is positioned mid-band of the Bollinger bands (51%). The valuation remains atypical: the stock is priced at about 2.9 times the expected earnings for the current fiscal year, against an average of 14.3 times in the Consumer Discretionary sector, with an anticipated EPS growth of 44.5% between the current and the next fiscal year. Next key date: the 2026 general assembly scheduled for June 3.
