Air France – KLM (EPA:AF) Stock Price

The Air France – KLM (EPA:AF) stock price ended down slightly in trading yesterday, settling at 11.97 (-0.12, -1.00%). There has been mixed news for the airline in recent days, so what has affected the Air France – KLM (EPA:AF) stock price more?

Air France – KLM (EPA:AF) Stock Price

First, the bad news. In a major deal which is bound to shake up the entire aviation industry, British Airways plc and the Spanish airline Iberia have announced that they have a ‘definite’ merger deal. When completed, the company will be one of the biggest airlines in the world, with more than 400 planes flying to more than 200 locations around the world. They will provide transportation to more than 60 million passengers every year.

The process of merger is by no means finalized, and there are still a number of bumps along the way which could derail it, not least the $3.99 billion pension fund shortfall that BA has to deal with. Analysts are confident that the merger will go ahead as planned, however, and will create a firm which will have the size and power of Air France-KLM (EPA:AF), Lufthansa, Delta Air Lines and American Airlines.

Air France-KLM (EPA:AF) did have some positive news, however. Reports are that their passenger traffic for March was up 4.7%, as people shrugged aside the financial crisis and started traveling again.

We will see how these stories continue to affect the Air France – KLM (EPA:AF) over the coming weeks.