The French state will prop up Air France with €3 billion in loans and another €4 billion in state-guaranteed funds, while Dutch authorities were readying to give KLM between €2 billion and €4 billion in support.

The group said the bailout deal was inked “following several weeks of discussions” and would be subject to approval by the European Commission. 

Funds will allow the carriers to meet obligations and “adapt in a sector that the global crisis will severely disrupt,” Air France-KLM said in a statement.

“On behalf of the Air France-KLM board of directors, I would like to thank the French state and our banking partners for this aid, which will enable the Air France-KLM Group to overcome this unprecedented crisis," said board of directors chair Anne-Marie Couderc.

"It is also the recognition of the strategic role our group plays in the service of France, the Netherlands and our fellow citizens. The management and all employees of the Air France-KLM Group will undertake every effort to prove ourselves worthy of the trust placed in us.”

Air France-KLM Group chief executive Benjamin Smith, added: "This aid, along with the group’s action plan, will enable us to withstand this crisis and foresee the future of Air France-KLM with ambition and determination.

“We are a strong group, and we are united in face of this crisis. I would like to once again salute the exceptional commitment of our employees for their dedication to the repatriation of our fellow citizens, the transport of medical equipment, and maintaining the essential links with territories.”