Air France-KLM Falls After Hinting That Equity Raise May Go Ahead

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Air France-KLM Falls After Hinting That Equity Raise May Go Ahead
Credit: © Reuters.

By Catherine Reynolds

Investing.com – Air France-KLM stock fell 1.1% in European morning trading, lagging a generally positive start to the week across the continent, after indicating that it still wants to raise equity to strengthen its balance sheet despite the latest dip in travel stocks due to the pandemic.

The airline repeated that it is still looking at capital strengthening measures such as issuing new equity or equity-like instruments, after it redeemed 500 million euros ($564.8 million) of a 4 billion euro loan from the French state to help it through the Covid pandemic.

The airline said the move was prompted by signs of recovery in air traffic and improved access to capital markets. It has also negotiated an extension of the loan, which was initially due in full in May 2023. It will now pay back the loan in three stages between 2023 and 2025.

 

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