The government said the French state, the largest shareholder with a 14 percent stake, will not bail out the airline.
The French finance minister Bruno Le Maire called into question the survival of the national air carrier Air France on Sunday.
On Monday, the company's shares went into tailspin on the Paris stock exchange on Monday, falling by 13 percent after the French finance minister's statements, and following the resignation of the company's CEO on Friday.
Air France said Friday that rising expenses for jet fuel plus a stronger euro will add to the burden caused by a string of walkouts by staff fighting for higher wages.
Air France is entering its third week in a walkout by air-crews, ground staff and pilots demanding a 5,1% pay rise; Le Maire said the company faced a challenge of competitiveness and could "disappear", appealing to workers to be responsible.
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The strikes have charge Air France significantly more than 300 million euros.
Despite the strike, the airline insisted that it would be able to maintain 99% of long-haul flights on Monday, 80% of medium-haul services and 87% of short-haul flights.
Air France-KLM is one of Europe's unique aircraft, however, has seen a progression of strikes as of late.
Until new management plans are in place, Air France executives lack a mandate to continue negotiations with unions, prolonging the dispute.
Air France-KLM (OTCMKTS:AFLYY) has been assigned an average rating of "Hold" from the eight research firms that are now covering the stock, MarketBeat.com reports.