Air France-KLM announced that it has repaid €500 million of an outstanding €4 billion French-state backed loan.
According to an Air France-KLM statement dated December 13, 2021, the airline has already redeemed €500 million, or one eighth, of a €4 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.
Currently, the airline is committed to repaying €800 million in May 2023 and a further €1.35 billion to follow in May 2024. A final payment of €1.35 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.”