Germany’s largest airline said it was able to pay back the money and cancel any undrawn funds sooner than expected thanks to rising demand for air travel, its own cost-cutting measures and its own fund-raising efforts on the capital market.
“On behalf of all Lufthansa (LHAB) (LHA) employees, I would like to thank the German government and the German taxpayers,” Lufthansa (LHAB) (LHA) chief executive Carsten Spohr said in a statement on November 12, 2021. “In the most serious financial crisis in our company’s history, they have given us a perspective for the future.”
As countries have eased travel restrictions and demand has returned, Lufthansa (LHAB) (LHA) has been able to return to the capital markets for financing, rather than having to rely on government help.
On November 9, 2021, it issued a €1.5 billion bond, its third bond of the year. It also completed a €2.2 billion capital increase in October 2021.
CEO Spohr added: “Lufthansa (LHAB) (LHA) was able to rely on Germany and Germany can rely on Lufthansa (LHAB) (LHA). Many challenges remain. Our ambition is to strengthen our position among the world’s leading airline groups. To this end, we will consistently continue the restructuring and transformation of the company.”