Air France-KLM needs to raise more capital to maintain its balance sheet as pandemic keeps battering the air travel and europe is worst affected.
The airline, on Thursday said, it sustained a first quarter operating loss of 1.2 billion euros ($1.4 billion) and the Shareholders will be consulted later to approve proposals that would potentially raise billions of euros.
The capital could help lower long-term debt of mammoth 14.2 billion euros at the end of the first quarter, that is holding back the balance sheet.
Air France-KLM is counting on global vaccination campaigns and upcoming summer holidays to revive consumer demand for travel.
“There is still a long road ahead,” Chief Financial Officer Frederic Gagey said on a call with journalists. “There is a very small risk of a cash crisis” unless the summer season turns “catastrophic.”
Air France-KLM plans to offer about 50% of 2019 network capacity this quarter and 55% to 65% during the following period, according to the statement.
The airline has survived the pandemic onslaught ,only through state aid from France and the Netherlands, at the bargain of owning about 38% of the airline.
Only Last month, Air France-KLM raised 1.04 billion euros as part of a 4-billion-euro French rescue plan. The effort followed the 10.4 billion euros in government loans and guarantees granted last year.
However, the encouraging part for Air France-KLM in recent months has been higher demand for cargo, that generated an 80% increase in first quarter revenue to 839 million euros.
