Air France-KLM rises as Dutch arm unveils cost-cutting plan
** Shares in Air France-KLM AIRF.PA rise 3.6% after it announced cost-cutting measures at its Dutch arm KLM to counter rising equipment, staffing and airport fees
** The measures, including delayed investments, flight adjustments and reduction of office jobs, aim to improve KLM's operating results by 450 mln euros ($497 mln) in the short term
** AlphaValue is positive on KLM's initiatives and expects them to lead to upward revisions to 2024-2026 EBIT margin consensus
** The stock's seemingly muted performance is partly due to the Middle East conflicts, which threaten flight disruptions and higher fuel costs, AlphaValue's Yi Zhong says
** "While the plan is presented as being aimed at improving revenue and reducing costs, at first glance it looks much more like a cost cutting plan which may end up leading to disputes with staff," Goodbody analyst Dudley Shanley warns however
** Air France-KLM is the top performer on France's SBF 120 index .SBF120 which is down 0.74%
($1 = 0.9058 euros)
Reporting by Dagmarah Mackos
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