Air France-KLM has gained shareholder approval for its proposed capital increase. French financial newspaper Les Echos reported that it is ready to move swiftly. The airline had announced that it plans to raise up to 4 billion euros. Because, it seeks to repay state pandemic handouts, but neither terms nor timing were disclosed.
The recapitalisation will take place in the next few months. And that includes France, the Netherlands, Delta Air Lines and China Eastern. Air France-KLM aims to issue convertible bonds while also selling some assets as soon as air transport sector stock prices rise. France is the airline’s biggest shareholder with a 29% stake. The Netherlands stake holds less than 10%, Delta Air Lines about 6% and China Eastern 10%. French Finance Minister Bruno Le Maire stated that the state would support Air France-KLM in its capital increase.