Air France-KLM Swung to Positive Operating Result in 4Q; Plans New Equity-Strengthening Measures
February 17 2022 - 3:07AM
Dow Jones News
By Olivia Bugault
Air France-KLM turned to a positive operating result in its
fourth quarter as revenue more than doubled, and it said that it
plans to start implementing new equity-strengthening measures.
The Franco-Dutch airline said Thursday that it booked a net loss
of 127 million euros ($144.5 million) for the quarter, lower than
the EUR1 billion net loss in the year prior. Its closely-watched
operating result swung to a profit of EUR178 million from a loss of
EUR1.14 billion.
Revenue stood at EUR4.84 billion from EUR2.36 billion, it
said.
Air France-KLM expects network capacity between 73% and 78% of
2019's levels in the first quarter of 2022, with earnings before
interest, taxes, depreciation, and amortization around break-even,
it said.
The airline, which has been looking at new measures to
strengthen its balance sheet for a while after receiving EUR4
billion in French state-backed loans last year, said that it "now
plans to start a new step of equity strengthening measures."
"In total, these equity and quasi-equity issuances could
represent up to 4.0 billion euros," it said.
Measures could mostly consist of a capital increase with
pre-emptive rights for shareholders or an issuance of quasi-equity
instruments such as straight and convertible perpetual bonds, it
said.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
February 17, 2022 02:52 ET (07:52 GMT)
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