AIR FRANCE-KLM ADS - AFLYY STOCK NEWS

The press release provides details on the total number of voting rights and shares as per the French code of commerce and AMF regulations. As of June 30, 2021, the company had 642,634,034 shares outstanding. The theoretical number of voting rights, including double voting rights, totals 860,613,327. This disclosure aims to ensure transparency regarding shareholder voting capabilities.

Air France-KLM successfully issued €800 million in senior notes through two tranches. The first tranche of €300 million has a 3-year maturity with a 3% annual coupon, while the second tranche of €500 million has a 5-year maturity with a 3.875% coupon. Proceeds from this issuance will refinance existing market debt and part of the State Aid debt from May 2020. The settlement date is set for July 1, 2021. This move is part of the company's strategy to bolster its balance sheet and prepare for recovery.

The KLM Ground pension fund has transitioned to a Defined Contribution Scheme, finalizing the de-risking of KLM's primary Dutch pension plans. This change, effective January 2021, aligns with the Netherlands' pension trends and aims to stabilize annual contributions. The new scheme will mitigate the risk of deficit payments and allow for predictable equity valuations. A one-time payment of 49 million euros will be made to the fund in June 2021 as part of the agreement, alongside an increase in yearly premiums. The derecognition of the pension asset from the balance sheet may impact the company's financial statements.

This press release provides an official declaration of the number of voting rights and shares as mandated by L.233-8 II of the code of commerce and article 223-16 of the French market authority (AMF). As of May 31, 2021, the company reports a total of 642,634,034 shares with a theoretical number of voting rights amounting to 860,617,537, which includes double voting rights. This information is crucial for shareholders as it impacts their voting power in corporate matters.

Air France-KLM announced the retirement of Group CFO Frédéric Gagey, effective July 1, 2021, after 25 years of service. His successor, Steven Zaat, currently CFO of Air France, will take over on the same date. Gagey was credited with significant contributions during his tenure, particularly in navigating financial challenges. Zaat brings over 20 years of experience in the airline industry and has held various key finance roles within the group, making him well-prepared for his new position.

In the first quarter of 2021, Air France-KLM reported a significant decline in revenues, totaling €2.2 billion, a 57% drop year-over-year, largely due to ongoing travel restrictions resulting from the COVID-19 pandemic. The Group recorded an operating loss of €1.2 billion and a net loss of €1.5 billion, while net debt increased to €12.5 billion. Liquidity remains strong with €8.5 billion available. The company anticipates continued challenges in the near term but expects gradual recovery as vaccination efforts progress, particularly in the U.S., and plans to ramp up capacity during the second quarter.

This press release provides information on the total number of voting rights and shares as per French regulations. As of April 30, 2021, the company holds 642,634,034 shares, leading to a theoretical total of 860,617,915 voting rights, which includes double voting rights. This disclosure is essential for maintaining transparency with shareholders and adhering to compliance requirements set by the AMF.

The Air France-KLM Shareholders’ Meeting will be held on May 26, 2021, without physical attendance due to health crisis restrictions. Shareholders can vote online or by mail, with no admission cards issued. The meeting will be broadcast live on the company’s website, and a replay will be available afterward. Detailed participation procedures and information are accessible on the company’s website, adhering to French commercial regulations. Shareholders are encouraged to submit written questions in advance.

Air France-KLM has issued undated deeply subordinated notes totaling €3 billion as part of its recapitalization strategy, aimed at strengthening its equity without impacting cash flow. This issuance consists of three tranches of €1 billion each, with respective interest rates starting at 7.00%, 7.25%, and 7.50%. The notes, subscribed entirely by the French State, can be converted into equity under certain conditions, providing increased flexibility in debt repayment. This move enhances Air France's financial stability amid ongoing recovery efforts.