Barclays cuts Air France-KLM on political uncertainty, shares hit record low
Adds share move, milestones, details from the research note
** Shares in Air France-KLM AIRF.PA drop as much as 7% to 7.99 euros, its lowest price on record, after Barclays downgrades the Franco-Dutch airline group to "equal-weight" from "overweight" on political uncertainty
** "We see the political contexts in both France and the Netherlands as very challenging for management. Strategy, cost control and revenue outlook all face challenges," it says
** Barclays notes the current govt supported the airline through the pandemic, navigated corporate governance challenges with the Dutch govt, and had been supportive of its SAS SAS.ST acquisition plan
** "Polarisation of French politics risks disruption to business and consumer confidence and possible elevated social unrest, all of which would be challenging for Air France's unit revenues," it adds
** But Barclays remains constructive towards the airline's strategic position and management, and says it sees flag carriers as well placed
** The shares are down 4.5% by 0759 GMT, on track for their biggest single-day drop since late February
Reporting by Michal Aleksandrowicz
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