Shareholding sold for €467 million as part of extreme cost-cutting
Air France KLM Group has made €467 million by selling off around half of its 15.22% shareholding in Amadeus IT Holding. The sale is seen as part of an overall effort to restore profitability in the Franco-Dutch group, which launched a three-year “transformation plan” in January by slashing costs by €1 billion and quickly cutting debt by €2 billion to €4.5 billion by the end of 2014.
The airline group is expected to post an operating loss of around €240 million and a net loss of up to €650 million in financial results for its shortened nine-month financial year 2011. The results are due out on March 8. IAG, by contrast, posted a €555 million net profit for 2011 this week.
[pictured: CFM-56 engine on Airbus A321; courtesy Air France]