Air France-KLM ready to move swiftly with capital increase, Les Echos reports

PARIS (Reuters) – Air France-KLM has gained shareholder approval for its proposed capital increase and is ready to move swiftly, French financial newspaper Les Echos reported on Sunday.

The airline had announced on Thursday that it plans to raise up to 4 billion euros ($4.6 billion) as it seeks to repay state pandemic handouts, but neither terms nor timing were disclosed.

The recapitalisation will take place in the next few months with main shareholders including France, the Netherlands, Delta Air Lines and China Eastern, the paper said.

Air France-KLM aims to issue convertible bonds while also selling some assets as soon as air transport sector stock prices rise, Les Echos reported.

France is the airline’s biggest shareholder with a 29% stake, the Netherlands stake holds less than 10%, Delta Air Lines about 6% and China Eastern 10%.

French Finance Minister Bruno Le Maire on Friday said that the state would support Air France-KLM in its capital increase.

(Writing by Juliette Jabkhiro; Editing by David Goodman)