Air France stocks rally on aid deal
The Dutch move follows a 7 billion-euro bailout of Air France
Stocks impacted: Air France-KLM (AF)
Air France-KLM jumped over 5% on Friday in a knee-jerk reaction to the news that the governments of France and Netherlands reached a deal on an aid package for the airline group. The Dutch government would provide Air France-KLM’s Dutch subsidiary KLM with a €3.4 billion financing package. KLM will receive 2.4 billion euros of state-backed commercial funding and 1 billion euros in direct government loans. The Dutch move follows a 7 billion-euro bailout of Air France. At that, the Dutch aid package is likely to come with environmental conditions and restrictions on executive pay demanded by lawmakers. In the initial reaction to the announcement, the company’s shares jumped over 5%, paring the decline this year to 56%. At the time of writing, Air France stocks traded just 1.9% higher.
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