Air France stock shares fall amid strike, CEO's resignation

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Le Maire also warned that the state - which owns 14.3 percent of the group - would not serve as a backstop.

In a statement on Friday, CEO Jean-Marc Janaillac said he would quit in mid-May after tens of thousands of French staff and pilots voted against a multi-year pay offer.

The company had offered a staggered 7 per cent pay increase over four years, with 2 per cent in 2018 and further increases dependent on the airline's financial performance.

Pressure on Air France-KLM AIRF.PA grew on Monday as its shares fell by more than 10 percent after chief executive Jean-Marc Janaillac said he would resign over the rejection of a pay deal by the airline's staff.

Air France warned that industrial action would continue to affect its services today and tomorrow.

It came as a new strike on Monday over wage demands prompted the cancellation of about 15% of Air France flights worldwide.

On Sunday, Mr. Le Maire disclosed to French news channel BFM: "I approach everybody to be mindful: group, ground staff, and pilots who are requesting unjustified pay climbs".

A May 4 electronic vote resulted in a "no" vote to the plan by a majority of Air France staff.

Air France-KLM is in danger of "disappearing" amid a series of continuing strikes, said France's economy minister on Monday. While nearly all long-haul flights are predicted to operate, one in five medium-haul services from Charles de Gaulle airport in Paris won't, with short-haul trips from Orly also affected.

'Air France will disappear if it does not make the necessary efforts to be competitive, ' he warned.

The overall cost of eleven days of strikes is estimated at some 300 million euros (almost $359 million), with one day of protests costing the company slightly more than 25 million euros.

The French government, which owns 14.3 per cent of the company, said Air France needed to reform or its survival would be at stake.

The strikes have taken a heavier toll on Air France than management and investors expected, and the company last week forecast a "notably" lower income this year compared with 2017. The agreement, rejected by the trade unions, outlined a 7-percent salary raise between 2018-2021, with a 1-percent salary increase in 2018.

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