PARIS, Dec 13 (Reuters) - Air France KLM has
redeemed 500 million euros ($564.8 million) from an earlier
French state loan issued to help the airline cope with the
fallout from the COVID-19 pandemic, and the company said on
Monday it could also raise new equity.
Air France-KLM said it had redeemed 500 million euros out of
a 4 billion euro bank loan guaranteed by France, and had
negotiated to extend the maturity on the overall loan from May
6, 2023 to May 6, 2025.
The airline, which like many in its sector has been hit by
travel restrictions imposed to curb the spread of the COVID
virus, said it was in talks on strengthening its capital.
"As previously disclosed, discussions are ongoing on further
capital strengthening measures at Air France-KLM Group level.
These measures could include instruments such as the issuance of
equity or quasi-equity instruments, depending on market
conditions," Air France KLM said.
Two sources familiar with Air France KLM's plans had told
Reuters earlier this month that Air France KLM was considering
delaying a planned capital increase because of tough travel
restrictions imposed by governments to mitigate the spread of
the Omicron variant of the coronavirus.
($1 = 0.8853 euros)
(Reporting by Sudip Kar-Gupta; Editing by Shri Navaratnam nd