PARIS, May 24 (Xinhua) -- Air France-KLM Group is to launch a capital increase of 2.256 billion euros (2.417 billion U.S. dollars), the Franco-Dutch airline holding company said in a press release on Tuesday.

       The launch of the capital increase is with preferential subscription rights to existing shareholders maintained through the insurance of 1,928 million new shares in the group to be subscribed in cash and or by offsetting claims, it said.

       The subscription price is 1.17 euros per new share with a subscription parity of three new shares per one existing share. The subscription period is from May 27 to June 9.

       The COVID-19 recapitalization aid that was granted will be repaid by 1.7 billion euros in order for Air France-KLM to "free itself from the conditions set by the European Commission's temporary framework" and "reduce the Company's net indebtedness," the company said.

       The capital increase is also for the group to strengthen its balance sheet and recovery to enable a stronger financial trajectory by a better oriented operational context and to further repay the French State Aid over the next quarters, noted the press release.

       "As the recovery continues and our economic performance recovers, in particular thanks to our ambitious transformation plan and the structural benefits it continues to deliver, we want to be in a position to seize any opportunity in a changing aviation sector and to be able to accelerate our environmental commitments," said the CEO of Air France-KLM Benjamin Smith. (1 euro = 1.07 U.S. dollars)