Air France-KLM has signed a new €1 billion (US$1.16 billion) multi-purpose credit facility with a syndicate of 12 international banks, further strengthening the group’s financial flexibility and liquidity position.
The facility can be drawn and repaid at the group’s discretion and has an initial maturity date of June 2028. It also includes a one-year extension option, subject to lender approval, which could extend the facility until June 2029.
The new financing will be used to refinance existing financial instruments, including those linked to potential mergers and acquisitions activity from the second half of 2026, subject to the completion of relevant transactions.
The facility complements Air France-KLM’s existing liquidity resources and diversified funding structure, supporting the group’s broader financing strategy. Alongside bond issuances, it will help the airline group manage future debt and hybrid instrument redemptions while simplifying its balance sheet.
By combining the credit facility with capital market funding, Air France-KLM aims to diversify its financing sources and optimise the timing and pricing of future transactions by taking advantage of favourable market conditions.
The agreement was secured on attractive terms, reflecting the confidence of the group’s banking partners in Air France-KLM’s financial performance and credit profile. The facility will not affect the group’s gross debt position or its net debt-to-current EBITDA ratio, which stood at 1.5x at the end of March.
Maintaining leverage between 1.5x and 2.0x remains a key financial objective for the group as it continues to strengthen its balance sheet while retaining the flexibility to support future growth and strategic opportunities.
