Air France-KLM shares slump as CEO bows out

Shares in Air France-KLM fell the most since 2014, as the surprise exit of chief executive Alexandre de Juniac after just three years in the top job created a power vacuum that puts Europe’s biggest carrier at the mercy of unions implacably opposed to cost-cutting plans.

The stock slumped as much as 8.6% as the announcement of Mr de Juniac’s departure, a year after he secured a new contract, leaves Air France-KLM rudderless.

The shares later rallied to pare losses to a 3% drop on the day. They are still up 13% this year and values the airline at €2.38bn.