Air France-KLM will expand its partnership with China Eastern Airlines, as the Chinese carrier contributes to a E1b share issue heavily backed by the French government, the airline group said on Monday. The French state will cover as much as two-thirds of a E988m capital increase by Air France-KLM, more than doubling its stake to nearly 30%, while 8.8% shareholder China Eastern invests up to E168m to maintain or slightly increase its stake, subject to a 10% agreed cap. The share issue, which may rise to E1.14b with an increase option, is part of an E4b recapitalisation announced last week - the latest move by a major airline group to shore up finances after more than a year of COVID-19 travel shutdowns and deep losses for the sector.<br/>