Air France-KLM has announced plans to seek an additional $7.1 billion cash raise from its two government shareholders and other investors, as it struggles to rise from the ashes of the global COVID-19 pandemic.
As Reuters reports, the airline group may soon receive another 4 billion euros from the governments, combining a capital injection and hybrid debt. It would then aim to raise a further 2 billion euros from investors later in the first quarter of 2021.
In April this year, Air France-KLM received a $10.9 billion state package to enable it to remain afloat during the COVID-19 pandemic that saw airline revenues dip due to the suspension of international passenger flights. At the time, Paris was ready to vouch for 90% or more of the bank loans to Air France, rather than the 70% initially offered.
Air France-KLM is a Franco-Dutch airline holding company with its headquarters at Charles de Gaulle Airport in Tremblay-en-France, near Paris. The French and Dutch states each own about 14% of the group.