air franceklm trades lower on thursday after it said it is preparing new measures to raise funds despite reporting a swing to positive operating result in its fourth quarter at 1314gmt air franceklm shares are 7 lower at eur416 the francodutch airline said that it plans to implement new measures to strengthen its balance sheet by up to four billion euros 455 billion which could consist of a capital increase and the issuance of straight and convertible perpetual bonds that would help pay back state bailouts it said air franceklm didnt give the timing of these measures saying that it intends to remain flexible on the transaction structures as well as on the sequencing and the sizing of each instrument depending on market conditions it also said that it wants to repay state aid as soon as practicable these measures will likely be dilutive bernstein said air franceklm received state aid and put in place a recapitalization plan during the pandemic that has heavily affected its results and operations fourthquarter results however showed signs that the company is on track to recover from the crisis with its closelywatched operating result at eur178 million higher than during the fourth quarter of 2019 when the pandemic hadnt yet hit earnings it also compares to an operating loss of eur114 billion during the same period last year net loss stood at eur127 million for the quarter lower than the eur1 billion net loss in the year prior revenue stood at eur484 billion from eur236 billion it said regarding the start of 2022 the airline said that it had to scrap some flights in january due to the pandemic and it expects passenger network capacity to be between 73 and 78 of 2019 levels in its first quarter in 2021 as a whole air franceklm capacity was at around 60 reaching 72 in the last three months its earnings before interest taxes depreciation and amortization should come in around breakeven in the first quarter of 2022 it said the company said that it wont provide a guidance for 2022 as there are still too many uncertainties surrounding the health situation and the reopening of travel routes to china and japan air franceklm said it still expects capacity to be back at 2019 levels in 2024