Aegean Airlines (32A), the flag carrier of Greece, received a governmental commitment to support the airline by €120 million to mitigate a €73.4 million net loss, which the air carrier suffered in the second quarter of 2020 due to air travel restrictions.

The government of Greece will inject €120 million worth of financial support into the flag carrier, announced Stelios Petsas, the Chief spokesman of the Greek government,  speaking to local media on November 23, 2020. A spokesman outlined that the government support would be given to strengthening the airline’s capital.

“In a comprehensive plan, based on the equitable sharing of burdens between the state and private shareholders, the government will support Aegean, the largest air carrier in our country, which is impacted by the effects of the pandemic on social and economic activity and in particular travel and tourism,” said Petsas.

According to Petsas, while the government would receive warrants in exchange for providing €120 million for Aegean, shareholders of the airline would also grant an additional €60 million. In a longer-term perspective, the government would get the injected money back after the recovery in air travel demand happens.

“With the warrants the state will get, when the recovery comes, the price of the shares will increase, meaning the state will get money back when this coronavirus adventure is over,” outlined the Chief spokesman.

The financial report of Q2 2020 showed that the total number of flights operated by Aegean fell by 82% while passenger traffic fell 92%. As a result, the airline faced a significant drop in its revenue by 64%.