Not a day goes by without the French airline, Air France, making headlines.
The latest news regarding the French group relates to a rating from Barclays which lowered its recommendation to “in line weighting”, citing political instability in France.
Air France KLM has, in fact, obtained the note of 6% at 8.08 euros at the opening of the Paris market. The price target is cut from 15 to 9.50 euros.
The polarization of French politics risks disrupting business and consumer confidence and causing increased social unrest, which would pose a challenge to Air France’s unit revenues, the bank says.
Furthermore, it will be more difficult to convince the Portuguese government to choose AF-KLM as a potential partner for TAP Portugal in an unstable French political context.
The broker also notes that the challenges for the company related to political developments in the Netherlands should not be ignored either, where the uncertainty hanging over Amsterdam Schiphol airport poses a significant management challenge.
From all of the above, it is obvious that the dissolution of the National Assembly by the President of the Republic, Emmanuel Macron, has a negative impact on the airline’s finances.
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