London Report: Airline decline and M&S worries keep the FTSE in the red

A PROFIT warning from Air France-KLM yesterday hit airline stocks and dragged the FTSE down by more than one per cent.

The blue-chip FTSE 100 index fell 1.25 per cent, or 85.06 points, to 6,738.45 points.

International Consolidated Air­lines Group – the owner of British Air­ways – slumped seven per cent to 335.90p, the worst-performing FTSE 100 stock in percentage terms.

Low-cost airline EasyJet dived 5.8 per cent to 1,248p, after Air France-KLM warned its 2014 profits could be as much as 12 per cent lower than previously predicted because of over-capacity and weak prices.

Iconic food and clothing retailer Marks & Spencer fell 1.34 per cent to 427.40p, after the company reported that first-quarter sales had been held back by its transition to a new website.

Drugmaker Shire also fell 2.6 per cent to 4,530p as traders expressed disappointment at rival AbbVie’s latest offer, with some saying they wanted it to offer more cash.