AIR FRANCE-KLM ADS - AFLYY STOCK NEWS

Air France-KLM has filed its 2021 First Half Financial Report with the AMF on August 3, 2021. This report details financial metrics for the period of January to June 2021. The French version is accessible on the company's website under the Results and Regulated information section, while the English version can be found at the same location. Interested parties can also find the report on the AMF website.

In Q2 2022, the Air France-KLM Group reported a positive operating result of €386 million, an increase of €1.145 billion year-over-year. Net income reached €324 million, up by €1.8 billion from the previous year, aided by improved EBITDA and ticket sales. The company reduced net debt to €6.0 billion, down by €2.2 billion since year-end 2021. Capacity increased by 81.9% year-over-year, while unit revenue per ASK rose by 93.6%. Despite operational challenges and additional compensation costs of €70 million, the outlook remains positive with strong liquidity of €11.9 billion.

Air France-KLM has signed an agreement with Apollo Global Management for a EUR 500 million investment in an operating affiliate that will manage spare engines for Air France's maintenance activities. The investment involves perpetual bonds, yielding an initial interest rate of 6% for three years, facilitating the redemption of state aid bonds. This transaction aims to lower financing costs without affecting ownership or operations. Expected to close in July 2022, it supports Air France's fleet renewal efforts while maintaining employee contracts.

The press release provides an update on the total number of voting rights and shares for the company as of June 30, 2022. It states that there are 2,570,536,136 shares, with a theoretical number of 2,792,564,813 voting rights, including double voting rights. This information complies with French market regulations, specifically L.233-8 II of the code of commerce and article 223-16 of the AMF general rules.

Air France-KLM successfully completed a €2.256 billion rights issue, receiving strong demand totaling approximately €2.6 billion, reflecting a take-up rate of 116%. Major shareholders, including the French and Dutch states, participated fully to maintain their equity. CMA CGM emerged as a new strategic shareholder with a 9% stake. The funds will primarily be used to repay state aid and reduce debt, reinforcing Air France-KLM's financial position. The company aims for a net debt/EBITDA ratio of 2.0-2.5x by 2023, supporting a targeted operating margin of 7-8% by 2024.

The press release provides an update on the number of voting rights and shares for the company as of May 31, 2022. The total number of shares stands at 642,634,034, with a theoretical number of voting rights reaching 866,099,727, which includes double voting rights. This information is issued in compliance with the French market authority regulations.

Air France-KLM launches a €2.256 billion rights issue to strengthen its balance sheet and repay state aid. This capital increase involves issuing 1.928 billion new shares at a subscription price of €1.17 per share. The net proceeds will mainly settle subordinated bonds held by the French State and reduce net debt. The French and Dutch governments plan to maintain their shareholding through participation in the issue, and CMA CGM is set to become a strategic partner with a commitment of up to €400 million.

Air France-KLM has entered exclusive discussions with Apollo Global Management for a 500 million euros capital injection into an affiliate that manages spare engines. This funding aims to reinforce the Group's equity, facilitate partial reimbursement of French State Aid, and lower the Group's debt costs. The transaction is aligned with the European Commission’s framework for state aid during the Covid-19 pandemic and will not impact operational aspects or employee contracts. The capital will improve Air France-KLM's balance sheet by being recorded as equity under IFRS.

Air France-KLM and CMA CGM have formed a strategic partnership in air cargo, set to last 10 years. This collaboration combines Air France-KLM’s air transport expertise with CMA CGM’s logistics capabilities, leveraging a fleet of 10 full-freighter aircraft and 12 additional on order. CMA CGM will acquire up to 9% of Air France-KLM's capital, reinforcing its role as a reference shareholder. The partnership aims to enhance service offerings, ensuring integrated supply chains for customers while pursuing sustainability goals, including a commitment to Net Zero Carbon by 2050.