PARIS: Air France-KLM said Wednesday that it had signed a freight alliance with shipping giant CMA CGM, which will take a minority stake in the cash-strapped airline as it emerges from Covid losses.

CMA CGM, based in the Mediterranean port city of Marseille, has seen its profits soar during the pandemic as lockdowns wreaked havoc on global supply chains, prompting it to launch its own air freight service last year.

It recorded earnings of $17.9 billion last year thanks to high freight rates while Air France-KLM has racked up losses of 11 billion euros ($11.6 billion) over the past two years.

The airline has some 7.7 billion euros of debt despite massive bailouts by the French and Dutch governments, which own minority stakes in the former flag carriers that merged in 2004.

Financial details were not disclosed but CMA CGM said it would take up to nine percent of Air France-KLM’s stock, possibly at an upcoming capital increase round aiming to raise up to four billion euros.

“This partnership is fully in line with CMA CGM’s strategy and its ambition to become a leader in integrated logistics,” its chief executive Rodolphe Saade said in a statement.