Air France-KLM is reducing its balance sheet, but the situation in the aviation sector is worrying, company news

Air France-KLM shareholders responded. ” Subscription to the transaction was exceeded with a subscription percentage of approximately 116% “, Welcomes the Franco-Dutch airline in a press release announcing the result of its market appeal of 2.256 billion euros. This bet, which led to the fall of the title on the day of its announcement, was as important as it was bold, as it took place a year after a huge fundraiser of one billion euros. ” The success of our capital increase is a clear demonstration of the confidence of our existing shareholders and new investors in the prospects of Air France-KLM “Says General Manager Ben Smith.

CMA CGM owns 9% of the shares

The operation is accompanied by a reorganization of the funding round. The French and Dutch states have taken care to preserve their shares, they remain in the lead with 28.6% and 9.3% respectively. China Eastern Airlines and Delta Air Lines are diluted, holding only 4.7% and 2.9% against 9.6% and 5.8% earlier. The operation is primarily an opportunity for Marseille shipowner CMA CMG, the third in the world, to enter the capital of Air France-KLM: it now owns 9% of the shares. According to the resolution adopted at the general meeting, CMA CGM CEO Rodolphe Saade will soon join the carrier’s board of directors for a four-year term.

The funds raised will go to 1.7 billion euros to repay super-subordinated securities issued in the spring of 2021, and 0.6 million euros to reduce net debt, which peaked at 7.7 billion euros on March 31. By easing its balance sheet, Air France-KLM is gradually being released from one of the restrictions imposed by the European Commission, which prevents it from participating in the consolidation of the sector until Air France and its holding company reimburse 75% of the state aid received. Reimbursement will continue over the next few quarters, the group added, confirming that it seeks an operating margin of 7% to 8% by 2024. in the context of expected performance improvements. ยป

The threat of a strike looms

However, in the very short term, the clouds are gathering. If the desire to travel has remained unchanged, even increased tenfold at the end of the health crisis, the staff that was at the forefront of dismissal plans in 2020 and 2021 is now in short supply at airports and carriers. French EasyJet pilots have just sounded the alarm. In a letter addressed to the group’s leadership, published by the British media Inewsthey warn of the risk of mass cancellations due to lack of staff. ” mostly among hostesses and stewards and a little among captains. EasyJet is not the only one affected by this situation. On June 9, the German company Lufthansa announced the cancellation of about 900 domestic and European flights scheduled for Friday and weekend in July to and from the two major airports in Frankfurt and Munich, ie 5% of seats open for booking. In May, the Dutch company KLM was forced to cancel dozens of flights due to lack of staff. Deteriorating social context leads to strikes. On June 9, Roissy-Charles de Gaulle workers were called to strike. The new action is expected in early July during the holidays. In the stock market, this situation penalizes the rank of carriers. This Tuesday, Air France-KLM fell by almost 10% at noon.