AFLYY Air France ADS (PK)

By Olivia Bugault

Air France-KLM turned to a positive operating result in its fourth quarter as revenue more than doubled, and it said that it plans to start implementing new equity-strengthening measures.

The Franco-Dutch airline said Thursday that it booked a net loss of 127 million euros ($144.5 million) for the quarter, lower than the EUR1 billion net loss in the year prior. Its closely-watched operating result swung to a profit of EUR178 million from a loss of EUR1.14 billion.

Revenue stood at EUR4.84 billion from EUR2.36 billion, it said.

Air France-KLM expects network capacity between 73% and 78% of 2019's levels in the first quarter of 2022, with earnings before interest, taxes, depreciation, and amortization around break-even, it said.

The airline, which has been looking at new measures to strengthen its balance sheet for a while after receiving EUR4 billion in French state-backed loans last year, said that it "now plans to start a new step of equity strengthening measures."

"In total, these equity and quasi-equity issuances could represent up to 4.0 billion euros," it said.

Measures could mostly consist of a capital increase with pre-emptive rights for shareholders or an issuance of quasi-equity instruments such as straight and convertible perpetual bonds, it said.

Write to Olivia Bugault at olivia.bugault@wsj.com

(END) Dow Jones Newswires

February 17, 2022 02:52 ET (07:52 GMT)

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