Air France-KLM warns of deeper pain as fresh aid set to finally land

Air France-KLM warned there was more pain to come — but is poised to seal another volley of state aid after recording a E7.1b net loss in 2020 owing to the Covid-19 pandemic. The airline said Thursday it expected fresh aid to finally land in the coming weeks after months of talks. The timing “is more a question of days and weeks than quarters, so we are confident”, said Frédéric Gagey, group CFO, without being drawn on the size of the bailout involving “equity or quasi-equity”. The protracted talks, with its two largest shareholders, the French and Dutch states, along with the EC, include the EU pushing Air France-KLM to give up aeroplane slots at Paris Orly and Amsterdam Schiphol airports in exchange for aid. “We are pushing to ensure that they are proportionate and comparable with what Lufthansa has released [to access state funds],” said CE Ben Smith. “So we are negotiating with the European Commission and we’re hopeful that we will have an agreement . . . In the short term.”<br/>