Debt-laden Air France-KLM inks deal with cargo giant CMA CGM

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PARIS, May 18 — Air France-KLM said today that it had signed a freight alliance with shipping giant CMA CGM, which will take a minority stake in the cash-strapped airline as it emerges from Covid loss

es.

It recorded earnings of US$17.9 billion last year thanks to high freight rates while Air France-KLM has racked up losses of €11 billion over the past two years. Financial details were not disclosed but CMA CGM said it would take up to nine per cent of Air France-KLM’s stock, possibly at an upcoming capital increase round aiming to raise up to four billion euros.

Together the companies will operate 10 freight aircraft and a further 12 are on order, and Air France-KLM also provides cargo shipping as part of its regular passenger flights.

 

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