The European Commission has approved a €4 billion recapitalization of Air France-KLM.

This is stated in a press release.

The measure consists of a capital raising of up to EUR 1 billion and a conversion of a direct loan from the French state into a hybrid bond.

The Dutch state continues its discussions with the European Commission regarding a potential capital increase for KLM.

The Air France-KLM Group continues to be negatively affected by the pandemic in the first quarter, particularly given the third wave in several countries in Europe combined with travel restrictions in a significant number of countries.

Operating profit in the first quarter is expected to be around EUR -1.3 billion with an EBITDA result of around EUR -750 million.

Source: Direct News Agency