Press release

Rhea-AI Summary

Air France-KLM has received exclusivity from the Italian Government to negotiate a potential acquisition of a stake in ITA Airways, alongside equity partner Certares and commercial partner Delta Air Lines. While Air France-KLM is not currently investing in ITA's capital structure, it may consider taking a minority stake in the future. The partnership aims to enhance commercial opportunities, including codeshare agreements and ITA's entry into the SkyTeam alliance. This move underscores Air France-KLM's commitment to expanding its presence in the North Atlantic market and collaborating on joint frequent flyer programs.

Positive

• Air France-KLM secures exclusivity for potential acquisition of ITA Airways, indicating strong growth prospects.
• Partnership with Certares and Delta expected to foster synergy and enhance commercial opportunities.
• Potential for increased market presence in North Atlantic through enhanced partnership and codeshare agreements.

Negative

• None.

Paris, August 31^st, 2022

Press Release

Air France-KLM welcomes the announcement by the Italian Government granting the exclusivity to the Consortium formed by Certares - as equity partner - and Air France-KLM and Delta Air Lines - as commercial partners - for the next phase of the negotiations for the potential acquisition of a participation in ITA Airways held directly by the Ministry of Economy and Finance of the Italian Government.

Should this operation be concluded, Air France-KLM would become a commercial and operational partner of the Italian airline, as part of the consortium led by Certares. Air France-KLM at this stage is not investing in ITA’s capital structure. However, Air France-KLM Group could consider in the medium term to take a minority stake in ITA.

Air France-KLM has a longstanding relationship with ITA and previously with Alitalia. Together with its Joint Venture partner Delta Air Lines, Air France-KLM looks forward to fostering closer ties with ITA and building upon the existing commercial partnership the airlines have formed, in particular through the implementation of codeshare agreements and ITA’s entry into the SkyTeam alliance, of which Air France-KLM and Delta are founding members.

Air France-KLM would like to thank the Italian government for its consideration throughout the bidding process, during which Certares, Air France-KLM and Delta Air Lines notably emphasized the strong commercial opportunities this deal would bring ITA subject to obtaining all relevant approvals. This includes an increased presence on the North Atlantic axis, on which Air France-KLM, Delta and Virgin Atlantic operate the largest joint venture, as well as the opportunity to build an exclusive partnership between Air France-KLM’s Flying Blue, Delta’s Sky Miles and ITA’s Volare – one of Italy’s largest frequent flyer program-, to the benefit of the Italian carrier’s customers.

Investor Relations                                                        

Frédéric Kahane                 Michiel Klinkers                                

33 1 49 89 52 59                         +33 1 49 89 52 60                             

frkahane@airfranceklm.com                        michiel.klinkers@airfranceklm.com

Website: www.airfranceklm.com

Attachment

• 20220831 - AFKLM_ITA_final Eng version

FAQ

What is the significance of the Air France-KLM and Certares partnership regarding ITA Airways?

The partnership signifies potential growth opportunities for Air France-KLM, as they negotiate a stake in ITA Airways, enhancing their commercial presence.

Is Air France-KLM currently investing in ITA Airways?

No, Air France-KLM is not currently investing in ITA's capital structure but may consider a minority stake in the future.

What advantages does the Air France-KLM partnership bring to ITA Airways?

The partnership aims to implement codeshare agreements and facilitate ITA's entry into the SkyTeam alliance, benefiting ITA's customers.

How could the deal affect Air France-KLM's market presence?

It could increase Air France-KLM's presence in the North Atlantic market, allowing for stronger joint operations with Delta and enhancing frequent flyer programs.