UPDATE 1-Air France rejects report on low cash

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PARIS, July 17 (Reuters) - Air France-KLM (AIRF.PA) on Friday rejected a report that predicted it would run low on cash next year and face bigger losses if air traffic did not pick up and oil prices reached new highs.

Air France said it had 4.5 billion euros of cash at the end of June and 1.2 billion euros available through credit lines.

"This report presents various scenarios... The Executive Management of Air France-KLM wishes to make clear: - That in no respect does it validate any of these imaginary scenarios," it said in statement.

Air France added that annual debt repayment commitments were limited it had almost 40 aircraft which could be refinanced at any time.

The French daily Les Echos on Friday cited a report drafted by accounting firm Secafi for Air France's works council which said that under a worst-case scenario, the airline could post a wider loss in 2009-2010 than the 129 million euros In 2008-09.

It could also be short of cash within a year.

The report on Air France-KLM said that in a scenario where oil prices reached $70 a barrel combined with no recovery in air traffic, the French-Dutch airline could post sales down 9.5 percent and burn 1.5 million euros cash in 2009

In June, Air France-KLM issued 661 million euros of Oceane bonds to finance the purchase of new planes.

(Reporting by Astrid Wendlandt, editing by Marcel Michelson)