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Air France-KLM to Sell $2.4 Billion New Shares to Cut Debt

  • French, Dutch states aim to keep their stakes in the airline
  • Carrier currently barred from industry consolidation play
Air France-KLM has flagged plans for a 4 billion-euro capital increase.

Air France-KLM has flagged plans for a 4 billion-euro capital increase.

Photographer: Nathan Laine/Bloomberg
Updated on

Air France-KLM plans to sell about 2.26 billion euros ($2.4 billion) of new shares to shore up its balance sheet and repay a chunk of the state aid that helped the carrier survive the Covid-19 crisis.

The proceeds of the rights issue will be used to reimburse about 1.7 billion euros of subordinate bonds issued in April last year and held by the French government, and to further reduce debt, the Franco-Dutch airline said Tuesday. The subscription period is set from May 27 to June 9.