Air France-KLM and container shipping company CMA CGM SA have ended a year-old cargo alliance, citing difficulties with regulatory restrictions in some markets.

In May 2022, Air France-KLM and CMA CGM announced their intention to enter into a cargo commercial cooperation, which became effective in April 2023.

"The tight regulatory environment in certain important markets has prevented the cooperation from working in an optimal way," Air France-KLM said in a statement.

"As a consequence, Air France-KLM and CMA CGM today announce their decision to withdraw from their existing agreements from March 31, 2024."

The announcement noted that Air France-KLM and CMA CGM have begun discussions on new terms and conditions of a commercial relation to operate independently from March 31, 2024, onwards.

It added that both groups remain committed to working collaboratively to ensure cargo customers can continue to benefit from their respective networks.

CMA CGM also remains a core shareholder in Air France-KLM. 

"The parties have agreed to amend the existing lockup on CMA CGM shares in Air France-KLM's capital, which will now be effective until February 28, 2025," the statement said. 

It noted that the initial lock-up undertaking of CMA CGM (initial lock-up on all the company's shares subscribed by CMA CGM in the rights issues announced on May 24, 2022, expiring on June 15, 2025, and subsequent lock-up period on 50% of such shares expiring on June 15, 2028) is modified to "provide that the initial lock-up period ends on February 28, 2025, without any subsequent lock-up period."

The parties have also agreed that CMA CGM will step down from the Air France-KLM Board of Directors on March 31, 2024.