Air France-KLM SA provides passenger and cargo transportation services through its subsidiaries. It operates in the Network, Maintenance, Transavia, and Other segments, and also offers airframe and engine maintenance and component support services, including electronic, mechanical, pneumatic, and hydraulic services. Its services are provided under the Air France, KLM, and Transavia brand names. The company operates across France, the rest of Europe, North Africa, the Caribbean, the West Indies, French Guyana, the Indian Ocean, Africa, the Middle East, North America, Mexico, French Polynesia, South America, Asia, and New Caledonia. Founded in 1919, it is headquartered in Paris, France.
Portugal extends talks with Air France-KLM and Lufthansa on TAP sale
Portugal's government said Friday it would pursue talks with both Air France-KLM and Lufthansa on privatising a controlling stake in national airline TAP Air Portugal, after spokesman Antonio Leitao Amaro said the offers submitted by both contenders were very close. The government intends to sell up to 49.9 percent of TAP Portugal to a strategic investor, with staff to hold five percent. Following talks that could last several weeks, the government will choose one of the two contenders and hold final negotiations. TAP, which was renationalised in 2020 to stem losses from the Covid-19 pandemic, is among the few remaining state-owned carriers in Europe, with around 7,700 employees and a fleet of around 100 Airbus planes.
Ryanair Cuts Winter Traffic Target on High Fuel Costs
Ryanair, Europe's largest low-fare airline, has lowered its winter traffic target to 214 million passengers from 216 million, citing high unhedged jet fuel prices and warning that less well-hedged competitors may struggle to survive the winter. The airline, which has about 80% of its fuel costs hedged at $67 per barrel, faces exposure on the remaining 20% as jet fuel trades near $140 per barrel. Ryanair said it is strategically reducing exposure during the unprofitable winter schedule from November to March, and expects short-haul airfares in Europe to rise materially if oil prices stay high. The warning comes amid a global fuel price spike following Middle East hostilities, with Lufthansa Group expecting an additional $2 billion in fuel costs this year and Air France-KLM projecting a $2.4 billion increase.
Raymond James cuts airline estimates on higher fuel, upgrades Allegiant
Raymond James lowered estimates across its airline coverage universe, citing a higher jet fuel price forecast, while upgrading Allegiant Travel to Strong Buy from Outperform. The broker raised its jet fuel price forecast for the second half of 2026, 2027 and 2028 by roughly 18%, 14% and 7%, respectively, with Gulf Coast jet fuel prices up 39% quarter-to-date through August 19. Analyst Savanthi Syth said the higher fuel forecast primarily reflects elevated refining margin assumptions rather than crude prices, and pointed to Allegiant's greater quarter-to-date share pullback despite a constructive backdrop excluding fuel. U.S. TSA throughput has run about 2.6% lower year-over-year quarter-to-date versus a 1.1% decline in scheduled seats, while Raymond James raised its fourth-quarter U.S. domestic capacity growth forecast to 2.3% from 1.5% in early August. In Europe, intra-Europe seat capacity is up about 5% year-over-year over the summer, and Syth expects a favorable supply inflection heading into winter as fuel-hedge rolloffs and earnings pressure prompt capacity discipline at Ryanair, easyJet, AF-KLM, IAG and Lufthansa.
Air France-KLM submits binding offer for up to 49.9% of TAP Air Portugal
Air France-KLM has submitted a binding offer to acquire between 44.9% and 49.9% of TAP Air Portugal from state holding company Parpública, marking a decisive step in the Portuguese flag carrier's privatization. The offer is backed by a comprehensive strategic plan covering passenger transport, cargo, loyalty, and maintenance, repair and overhaul activities, with a focus on developing new MRO facilities in Portugal alongside TAP Maintenance & Engineering, a partner of over 20 years. Delta Air Lines, Air France-KLM's joint-venture partner and shareholder, supports the bid and would promptly begin negotiations on a strategic commercial agreement with TAP, including reciprocal codeshare and loyalty benefits, should Air France-KLM be selected. The plan envisions positioning Lisbon as a unique Southern European hub, strengthening connectivity to the Americas and Africa, and integrating TAP into the Group's global network while safeguarding its brand, management, and headquarters in Portugal. Air France-KLM CEO Benjamin Smith stated the proposal is a long-term plan for TAP and Portugal, aiming to create a European global aviation champion and support European sovereignty.
Air France-KLM terminates liquidity agreement with Rothschild Martin Maurel
Air France-KLM has terminated its liquidity agreement with Rothschild Martin Maurel, effective June 30, 2026 after the close of trading. The agreement was originally entered into on July 31, 2025. At termination, the liquidity account held zero shares and €10,009,392 in cash. Over the first half of 2026, a total of 650,575 shares were traded on each side, with purchases amounting to €7,532,191.78 and sales to €7,494,936.15.
Air France-KLM Issues €500 Million Senior Notes Under EMTN Program
Air France-KLM has successfully priced €500 million of senior unsecured notes under its Euro Medium Term Note program. The notes carry a 5-year maturity and a fixed annual coupon of 4.250%, with a yield of 4.318%. Net proceeds will primarily be used for general corporate purposes, supporting the group's balance sheet optimization by simplifying its capital structure, reducing funding costs, and increasing the proportion of senior debt. The transaction reflects investor confidence in Air France-KLM's credit quality, with the group's long-term debt rated BB+ by Standard & Poor's and BBB- by Fitch Ratings. BNP Paribas, Citi, and Crédit Agricole CIB acted as global coordinators, while Deutsche Bank, Goldman Sachs, ICBC, Santander, and SMBC served as joint active bookrunners.
Aviation Debt Issuance Tops $10.5 Billion in Record First-Half Pace
Aviation borrowers have raised more than $10.5 billion in debt year-to-date, the strongest first-half pace since 2021. Athens International Airport SA is making its debut in the euro bond market with a seven-year benchmark deal, while TAP Air Portugal is moving ahead with a 300 million five-year junk-rated bond. Many current deals appear tied to refinancing debt raised during the pandemic, with more than $22 billion, or 64% of debt sold in 2020 and 2021, carrying maturities of five to seven years. The market backdrop may be improving as oil prices drop and travel stocks recover, supported by a possible US-Iran peace deal and record jet fuel production by US and European refiners, according to the International Energy Agency.
Air France-KLM signs €1 billion credit facility with 12 banks
Air France-KLM has signed a new multi-purpose credit facility for €1 billion with a syndicate of 12 international banks. The facility, which can be drawn and redeemed at the issuer's full discretion, has an initial maturity in June 2028 and includes a one-year extension option at the lenders' discretion, potentially extending the maturity to June 2029. The purpose is to refinance existing financial instruments, including those associated with the group's M&A activity that may arise from the second half of 2026. The transaction strengthens the group's financial flexibility and complements its existing liquidity resources, with the group planning to continue its financing strategy through bond issuances to meet annual debt and hybrid redemptions. The facility benefits from attractive conditions reflecting banking partners' confidence in Air France-KLM's credit profile, and it will not impact the group's Gross Debt and Net Debt to Current EBITDA ratio, which stood at 1.5x at the end of March.
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