Air France-KLM Vows to Grow After $2.4 Billion Rights Issue

Stock dips after deeply discounted share sale to repay bailout
CEO Smith signals plans for transatlantic, low-cost expansion

Air France-KLM said last month it was in talks with Apollo Global Management for a 500 million-euro capital injection. — Air France-KLM said last month it was in talks with Apollo Global Management for a 500 million-euro capital injection.
Photographer: Nathan Laine/Bloomberg

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By Tara Patel

June 14, 2022 at 5:49 AM UTC

Updated on

June 14, 2022 at 10:35 AM UTC

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Air France-KLM vowed to expand low-cost and transatlantic flights after raising 2.26 billion euros ($2.4 billion) in a deeply discounted share sale to repay a chunk of the state aid that helped the carrier survive the Covid-19 pandemic.

The proceeds of the rights issue started last month will be used to reduce debt and reimburse about 1.7 billion euros of bonds issued last year and held by the French government, the Franco-Dutch airline said Tuesday.