Air France-KLM raises $2.4 billion in rights issue to reduce debt

Franco-Dutch airline group Air France-KLM has raised $2.4 billion in its latest rights issue.  

Announced on May 24, 2022, the rights issue comes as an additional recapitalization measure and is expected to help the airline to reduce debt. The capital increase will mostly be used to repay the French State Aid package, which was allocated to the carrier in April 2021. 

“This operation, which is part of a broader strategy to transform and streamline our Group, will allow us to emerge with a stronger balance sheet and increased strategic flexibility,” Benjamin Smith, CEO of Air France-KLM, said.  

“In a context of strong demand for travel, Air France-KLM will continue to implement its roadmap focused on increased profitability and sustainability, while meeting its customers’ expectations, fulfilling its CSR commitments and seizing the opportunities that will arise as the airline industry recovers.” 

Amid the capital increase, the French shipping group CMA CGM became a new shareholder with a 9% stake in Air France-KLM.