Air France-KLM's shares were among the best performers on the French stock market Monday Shares in Air France-KLM soared on Monday after French hotels group AccorHotels said it was weighing the purchase of a minority stake in the Franco-Dutch group.
AccorHotels said late Sunday that it had "resumed its reflections on the matter," following a report in French financial daily Les Echos.
The paper reported that Accor could buy all or part of the French government's 14.3-percent holding in the former flag carrier, either outright in cash or by swapping the state's stake for Accor shares.
The hotel group noted that it had previously held talks with Air France about buying a stake as part of developing "joint digital projects as well as a joint loyalty and services platform."
Air France-KLM's shares were among the best performers on the French stock market in morning trade, jumping 7.3 percent to 7.49 euros, while Accor stock slumped 6.1 percent to 44.71 euros.
Air France shares have lost nearly half their value since the start of this year amid a long-running strike by pilots, cabin crew and ground staff demanding a 5.1 percent pay rise this year.
Unions say they have borne the brunt of the airline's cost-cutting efforts, having accepted a pay freeze since 2011.
Management has said the pay hike would undo the years of restructuring, and warn the strikes have already cost the group some 220 million euros ($258 million).
Chief executive Jean-Marc Janaillac, who had been in the post for less than two years, staked his future on a company-wide vote on the matter in early May, only to see his plan for a seven percent raise over four years rejected.
His subsequent resignation prompted analysts to warn that the airline's outlook was highly uncertain just as it is facing stiff competition from carriers in the Gulf as well as low-cost operators in Europe.
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