Lufthansa seeks to repay German bailout with € 2.1 billion share offer


What’s new at Deutsche Lufthansa AG

Lufthansa has announced that it will raise more than 2.1 billion euros by offering new shares to investors and will use the proceeds to repay the billions of euros it received from Berlin in the summer of 2020.

NOT. Long-awaited fundingWill be underwritten by 14 banks and will be completed in early October, with Frankfurt-based airlines repaying the full 2.5 billion euros withdrawn from their Economic Stability Fund (ESF) by the end of the year. Useful for. ..

The German ESF participated € 9 billion bailout plan For Lufthansa, notably with the support of the Austrian, Swiss, Italian and Belgian governments last summer. Berlin has also spent 300 million euros on company shares and currently owns almost 16% of the group.

Lufthansa has repaid many of its withdrawals from the program, including a € 1 billion loan from German development bank KfW.

When the ESF tranche is fully repaid, the airline will cancel the entire facility and reimburse the remaining government for € 1.2 billion, a spokeswoman said.

CEO Carsten Spohr said: “We can now fully focus on the further transformation of the Lufthansa Group. ”

After being forced Almost all planes on the ground At the height of the pandemic, the group was slowly recovering, with flights in August reaching 50% of flights in the same month of 2019.

Lufthansa said it expects similar rates in September and October as demand for international and corporate travel increases, adding that it currently flies to 85% of its pre-pandemic destinations. ..

With the growing popularity of online shopping and increasing demand for air mail, the cargo industry has been booming in recent months as the air cargo capacity of passenger planes remains limited.

Lufthansa expects interest, taxes, depreciation and amortization profit to be positive for the first time since the pandemic, with no outflow of operating profit in the third quarter, despite a cash shortage of around $ 200 million. ‘euros per month. Says that. Occurred.

Aiming to restore overall profitability in 2024, the group plans to deliver up to 30 new aircraft per year in the future.

Lufthansa seeks to repay German bailout with € 2.1 billion share offer Lufthansa seeks to repay German bailout with € 2.1 billion share offer


About Author

Leave A Reply