(Adds detail from media report, share price)
PARIS Feb 7 Franco-Dutch airline Air France-KLM
is likely to launch a capital increase of at least 1
billion euros ($1.36 billion) towards the end of the year,
latribune.fr website reported on Friday.
The carrier declined to comment.
Shares in the airline were down 2.5 percent by 1009 GMT, the
biggest fallers on France's broader SBF 120 index.
"Air France is down because of the risk of a capital
increase," a trader said.
The stock had risen as much as 3.5 percent earlier on Friday
after Air France-KLM said passenger traffic rose 3.6 percent
last month, driven by growth on long-haul routes, especially to
and from the Americas.
Air France-KLM is cutting thousands of jobs to lower costs
as it wrestles with the impact of Europe's economic woes on
demand for air travel, soaring fuel costs, and aggressive
competition from low-cost carriers and Gulf carriers.
Market conditions are not suitable for a capital hike at the
moment and no decision has been taken yet, latribune.fr said,
adding that the move could come at the end of the year if the
The capital raising would enable the carrier to pay down
debt and seize investment opportunities, the financial news
($1 = 0.7353 euros)
(Reporting by Constance de Cambiaire and James Regan; Editing
by Andrew Callus)