Air France-KLM Announces the Successful Issuance of €500 Million Senior Notes under Its EMTN Program

Rhea-AI Summary

Air France-KLM (AFLYY) priced €500 million of senior unsecured notes under its Euro Medium Term Note program. The 5-year notes carry a fixed annual coupon of 4.250% with a 4.318% yield.

According to Air France-KLM, proceeds will fund general corporate purposes and support balance sheet optimization.

Positive

• €500 million senior unsecured notes successfully issued under EMTN program
• 5-year maturity with fixed 4.250% annual coupon and 4.318% yield
• Proceeds earmarked primarily for general corporate purposes
• Company highlights simplification of capital structure and lower funding costs
• Air France-KLM notes increased proportion of senior debt in capital structure
• Successful placement seen by company as investor confidence in its credit quality

Negative

• Issuance adds €500 million of senior debt obligations
• Fixed 4.250% coupon represents ongoing interest expense for five years

News Market Reaction – AFLYY

+2.31%

+2.31% Session close to close

In the Jun 25 session, AFLYY gained 2.31%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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Paris, 25 June 2026

Air France-KLM Announces the Successful Issuance of €500 Million Senior Notes under Its EMTN Program

 Air France-KLM today successfully priced €500 million of Senior Unsecured Notes under its Euro Medium Term Note (EMTN) Program.

The notes have a 5-year maturity and carry a fixed annual coupon of 4.250% (with a yield of 4.318%).

The net proceeds from the transaction will primarily be used for general corporate purposes. This refinancing further supports Air France-KLM’s ongoing balance sheet optimization by simplifying its capital structure, reducing funding costs, and increasing the proportion of senior debt in its capital structure.

The successful completion of this transaction further demonstrates investor confidence in Air France-KLM’s credit quality and strategic direction.

The Group’s long-term debt is 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 acted as Joint Active Bookrunners.

 Investor Relations                                                        

Michiel Klinkers                        Loulou de Winter                                                            

michiel.klinkers@airfranceklm.com        loulou-de.winter@airfranceklm.com

Website: www.airfranceklm.com

Attachment

• 2026 06 25 Air France-KLM announces the successful issuance of 500 million euros notes under its EMTN Program

FAQ

What are the key terms of Air France-KLM (AFLYY) €500 million notes issued on June 25, 2026?

Air France-KLM issued €500 million senior unsecured notes with a 5-year maturity and 4.250% fixed coupon. According to Air France-KLM, the notes were priced to yield 4.318% under its Euro Medium Term Note (EMTN) program.

How will Air France-KLM use the proceeds from the €500 million senior notes offering (AFLYY)?

The net proceeds will primarily be used for general corporate purposes. According to Air France-KLM, this refinancing also supports balance sheet optimization by simplifying its capital structure and reducing funding costs over time.

What does the new €500 million EMTN issuance mean for Air France-KLM’s (AFLYY) capital structure?

According to Air France-KLM, the refinancing increases the proportion of senior debt and simplifies its capital structure. The company also indicates the transaction is part of ongoing balance sheet optimization and funding cost management efforts.

What coupon and yield did Air France-KLM (AFLYY) secure on its June 2026 senior notes?

The notes carry a fixed annual coupon of 4.250% with a 4.318% yield. According to Air France-KLM, these terms were achieved on €500 million of senior unsecured notes maturing in five years under its EMTN program.

How does the €500 million notes issuance reflect investor confidence in Air France-KLM (AFLYY)?

Air France-KLM states the successful completion of the €500 million offering demonstrates investor confidence in its credit quality and strategy. This comes alongside existing long-term debt ratings of BB+ from S&P and BBB- from Fitch.

What are Air France-KLM’s credit ratings associated with the June 2026 €500 million notes (AFLYY)?

According to Air France-KLM, its long-term debt is rated BB+ by Standard & Poor’s and BBB- by Fitch. These ratings apply to the group and are relevant context for the €500 million senior unsecured notes issuance.