With the 2026 Finance Bill (PLF 2026), adopted after the government invoked Article 49.3 of the Constitution to secure a vote of confidence, the State has given itself the option of writing off up to €728 million in debts owed by Air France and Air France-KLM. This measure, a continuation of the aid granted during the health crisis, reignites the debate on public support for the national airline.
Summary
An authorization explicitly stated in the 2026 Finance Bill
The 2026 Finance Bill includes an amendment allowing the Minister of the Economy to waive all or part of the claims held by the State against Air France-KLM or Air France, up to a limit of €727.8 million. These claims stem from deeply subordinated bonds subscribed by the State in 2023 and recorded in the special purpose account "State Financial Holdings".
In practical terms, the budget authorizes the executive branch to proceed with this cancellation by ministerial decree, although this is not automatic at this stage. It is therefore a legal option provided by the finance law, and not an immediate cancellation.
A measure approved by the European Commission
This provision falls within the framework of state aid authorized by the European Commission. Brussels validated this mechanism in its decision SA.104957, which allows France to compensate Air France for damages suffered during the health crisis, up to a maximum amount of 1.4 billion euros.
The potential abandonment of debts thus corresponds to an accounting step of regularizing the mechanisms put in place after the pandemic, and not to a new direct aid decided ex nihilo.
A direct legacy of Covid support plans
As a reminder, the French government granted Air France a massive support package in 2020, amounting to €7 billion, consisting of guaranteed bank loans and capital advances. This aid aimed to ensure the continuity of the company's operations during the near-total shutdown of air traffic.
Since then, Air France-KLM has embarked on a gradual financial recovery. According to the specialized press, the group does not anticipate any impact on its financial trajectory if the option to waive debts were to be exercised by the State, the operation having primarily an accounting effect on the balance sheet structure.
A political gesture that raises questions
While the government presents this measure as a technical one, its timing raises questions. The authorization to remove the emissions comes at a time when the company has returned to positive results and the health crisis is now a thing of the past.
For the government, the goal is to honor the commitments made in 2020 and to ensure the long-term security of the national airline in a context of increased international competition. For its critics, this decision appears to send a mixed message, at a time when air travel taxes have been increased and the challenges of the ecological transition are weighing more and more heavily on the sector.
Favorable provisions also for airports
The 2026 Finance Bill also includes several adjustments to support airport infrastructure. Major regional airports are authorized to increase the security and safety tax by one euro per passenger. Furthermore, a new airport category has been created to exclude certain regional sites from the mechanism for eliminating subsidies related to security and safety deficiencies.
These measures aim to preserve the economic balance of several regional platforms, in a context of rising security costs and increased budgetary pressure.
A debate that is far from over
By paving the way for a debt write-off of nearly €728 million, the French government is making a strong strategic choice in favor of its national carrier. Caught between industrial logic, respect for the European framework, and economic fairness, the Air France case continues to illustrate the tensions inherent in public support for the airline sector.
The 2026 Finance Bill thus marks a further step in redefining the relationship between the State as shareholder and its national flag carrier, in a context where competitiveness, environmental transition and budgetary sustainability remain closely linked.
Sources
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