Air France-KLM repays E1b of state loan early after strong results

Air France-KLM Group has repaid early part of the outstanding state-backed loan granted to support the company during the pandemic. It had already redeemed E500m of the E4b sum in December last year. Air France-KLM says it has repaid a further E1b, ahead of schedule, after strong Q3 financial results. “The solid improvement in operating performance over the first nine months of the year have allowed the group to accelerate the repayment of financing received during the [pandemic] crisis,” it states. “This early repayment will improve the group’s debt profile by reducing financial costs and limiting exposure to floating rates.”Alongside the French state, a syndicate of nine banks took part in the loan. The E1b repayment comprises E800m to settle a tranche due to mature in May next year, plus E200m due to mature in May 2024. Air France-KLM aims to repay the balance of E2.5b in two parts, including the remaining E1.15b of the May 2024 tranche, in line with the original schedule, and the final repayment of E1.35b in May 2025.<br/>