Covid Aid to KLM: European Court Sides with Air France-KLM against Ryanair
Air France-KLM and its subsidiary KLM welcomed, on 5 November 2026, the ruling of the Court of Justice of the European Union, which set aside a judgment handed down at first instance following an appeal by Ryanair. In its press release, the group described this decision as favourable to Air France-KLM, although the proceedings are not yet concluded.
Court of Justice Sets Aside the February 2024 General Court Ruling
On 7 February 2024, the General Court of the European Union had annulled, at Ryanair's request, the new decision approving the aid to KLM adopted by the European Commission on 16 July 2020. That decision approved the liquidity support granted by the Netherlands to KLM to help it overcome the Covid-19 pandemic.
It is this judgment that the Court of Justice set aside on 5 November 2026. According to Air France-KLM, the immediate effect of this ruling is to restore full effect to the Commission decision that had been annulled.
Referral Back to the General Court to Examine Ryanair's Other Pleas
The Court of Justice referred the case back to the General Court so that it may examine the other pleas raised by Ryanair, on which it had not ruled at first instance. Air France-KLM stated that it "will do everything in its power to defend the interests of the group and its subsidiaries" as the case progresses.
The group also recalled that all the support measures received by Air France-KLM, Air France and KLM during the Covid-19 period had already been repaid, including interest, as early as 2023, in accordance with the applicable legal framework.
