Air France – KLM Group to receive up to $12 billion in state aid for COVID-19

The governments of France and the Netherlands will donate $12 billion to the Air France – KLM Group to help them parry the dangerous effects of the coronavirus on the aviation industry. The Dutch government proclaimed on Friday that it will provide €2 to 4 billion whereas the French government declared that it would present a €7 billion support package to Air France. There is some good news in the aviation industry, as travel stocks are making their way back up, especially Lufthansa’s, who’s share price rose by 9% on Monday. I wouldn’t be so sure that airline stocks are going to continue to go up for long, though, even with summer coming. Autumn (especially October) always turns out to be “Airline bankruptcy” time, so if you’re an investor in an airline, I wouldn’t keep you’re money in the market for an extended period of time. 2020 has been a very bad year in terms of new start-ups, so I would definitely not advise anybody to invest in airline stocks unless they are 100 % sure that they are safe. 28th of April 2020.

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