KLM finalizes the repayment of the loan granted by the Dutch State

0

KLM Royal Dutch Airlines has completed the repayment of the last part of the loan it agreed with the Dutch state and private banks in 2020. With the repayment of 277 million euros, the largest airline in the Netherlands eventually returned the amount received as part of the aid. to deal with the complications triggered by the pandemic.

Like many other airlines, KLM has relied on financial support from public sources to maintain capacity during downturns.

On the credit line of 3.4 billion euros, the company has drawn a total of 942 million euros. At the beginning of the year, she had made two repayments. Rising demand for air travel, the cessation of mobility restrictions and greater efficiency in its cost structure made reimbursement possible, KLM said.

The company repaid all of the 665 million euros to the banks in three stages. She paid 311 million euros on May 3 and an additional 354 million on June 3. All that remained was to complete the repayment of 277 million euros to the Dutch state.

– Advertising –

In an official statement, the company said it was “very grateful to the Dutch government and the banks for their support”. The text adds that “through this approach, KLM demonstrates that it takes its responsibilities and keeps its promises to financiers, the government and society”.

Pieter Elbers, CEO of KLM, highlighted the work of all KLM employees in 2020 and 2021: “I would like to thank all KLM colleagues for this,” he said. Furthermore, he assured that “the current operational situation at Schiphol is also difficult and, again, demands a lot from our staff and our customers”.

Outlook

While the airline industry has been showing definite signs of recovery for months now, KLM has decided to maintain its credit line for the foreseeable future. Rising levels of inflation, rising fuel and other input prices, as well as geopolitical uncertainties surrounding the Russian invasion of Ukraine, maintain a shroud of uncertainty over the state of the economy. aviation activity in the coming months.

After completing the repayment of the money used, the company will continue to have a line of credit of 2.4 billion euros (723 million from the government and 1.735 billion from the Dutch banks). Despite this, current forecasts are positive in terms of available financial resources for the coming years.

See also: Air France-KLM launches a new capital increase to overcome the pandemic crisis

Share.

Comments are closed.