Air France-KLM CEO Flags Further Recapitalization Later in 2021

Air France-KLM CEO Ben Smith indicated the struggling airline could seek a further recapitalization later this year even after the latest E4b rescue from the French government that includes the sale of new shares. “We do have heavy, heavy debt that is holding back our balance sheet,” the CEO said Monday at the virtually held World Aviation Festival conference. “This may have to get looked at later in the year.” Smith raised the possibility of another operation to bolster the carrier’s balance sheet at a time when uncertainty is weighing on the rebound in air travel in Europe. While some countries are lifting lockdown measures, the vaccine rollout has been slow and the reopening of shops and restaurants hasn’t necessarily led to relaxing border controls and quarantine requirements. The airline said earlier this month that the latest support by France was only a “first step” in repairing its balance sheet, while Finance Minister Bruno Le Maire also left the door open for more support.<br/>