Air France-KLM has repaid 300 ME of the outstanding 600 ME of hybrid bonds held by the French State

Photo credit © Air France

( — Air France-KLM announces that it has reimbursed 300 million euros out of the outstanding 600 million euros of perpetual hybrid bonds held by the French State, thus reaching the 75% threshold for the reimbursement of State aid to the recapitalization granted during the Covid-19 crisis. Air France-KLM also announces the refinancing of 320 million euros through the issue of new perpetual hybrid bonds with the French State.

In 2022, the Group repaid 2.4 billion euros of this 3 billion euros, bringing the residual amount to 600 million euros. As announced during the presentation of the Group’s 2022 annual results, Air France-KLM and Air France intend to fully exit the recapitalization aid and associated constraints as of April 19, 2023.

Following the approval by the European Commission, on February 16, 2023, of compensation aid from the French State subject to constraints, the Group has today taken a first step in the reimbursement and exit of the State aid for recapitalization. This step allows the Group to cross the 75% threshold for reimbursement of the recapitalization aid granted during the Covid-19 crisis.

In addition, the airline group will refinance 320 million euros by issuing new perpetual hybrid bonds with the French State qualified as compensatory aid for Air France. These new unconstrained perpetual bonds have similar financial terms to the redeemed bonds, with a blackout date and interest rate increase deferred for an additional two years (i.e. March 2029).


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