Air France share price up, despite plan not to extend its Transavia low-cost airline

Air France has decided not to expand its Transavia low-cost airline, French transport secretary Alain Vidalies announced this morning – but the news has failed to bring down the company's share price.

 

This morning, shares in the French airline went up by 1.1 per cent to €7.60 on the London Stock Exchange.

 

"The Transavia Europe project has been abandoned by management,” he told RMC radio. 

 

The purported decision follows a 10 days of strikes by Air France pilots, who are dissatisfied with local employment terms and poor pay, which is reported to have cost the airline €15m (£11.8m) a day. However, Air France disputed Vidalies' comment, saying it was “premature” to announce the project had been withdrawn.