Air France-KLM repays Ђ500 million of Ђ4 billion state-backed loan

Air France-KLM announced that it has repaid Ђ500 million of an outstanding Ђ4 billion French-state backed loan. 

According to an Air France-KLM statement dated December 13, 2021, the airline has already redeemed Ђ500 million, or one eighth, of a Ђ4 billion loan granted by France in April 2021 to help the airline cope with the ongoing COVID-19 pandemic.  

The carrier also said that it has negotiated a revised redemption profile of the loan, outlining that the move was taken following “early signs of a recovery of the worldwide air traffic, combined with improved access to capital markets,” the statement reads. 

In the recent update, Air France-KLM announced that it was in agreement with a syndicate of nine French banks and the local government regarding the gradual debt repayment schedule.  

Read more: WBP News

Currently, the airline is committed to repaying Ђ800 million in May 2023 and a further Ђ1.35 billion to follow in May 2024. A final payment of Ђ1.35 billion will be made in May 2025. 

The company also hinted at the potential to raise new equity. 

The statement continued: “Discussions are ongoing on further capital strengthening measures at Air France-KLM Group level. These measures could include instruments such as the issuance of equity or quasi-equity instruments, depending on market conditions.”