Lufthansa Repays Financial Aid Received From German State
November 12 2021 - 6:16AM
Dow Jones News
By Olivia Bugault
Deutsche Lufthansa AG said Friday that it has repaid the
financial aid granted by the German government last year during the
worst of the pandemic, and that the state will sell its entire
stake in the airline by October 2023.
The German airline said that this morning it has repaid the
remaining 1 billion euros ($1.14 billion) from its participation in
Germany's Economic Stabilization Fund, also known as silent
participation.
The repayment of the silent participation 2 package was made
earlier than originally planned, it said. The undrawn funds were
cancelled, it added.
Lufthansa recently said the repayment would happen by the end of
the year as it completed a long-anticipated EUR2.16 billion capital
increase in early October.
"This was made possible primarily by the rising demand for air
travel, the fast restructuring and transformation of the Lufthansa
Group and the capital markets' confidence in the company," it
said.
In October, Lufthansa--which received EUR9 billion in state aid
last year--had already repaid EUR1.5 billion for its silent
participation 1 package.
Along with a EUR1 billion loan it repaid to Germany's state
development bank KfW in February, Lufthansa has now repaid or
terminated all German loans and silent participations, it said.
With all aid repaid or terminated, the German state will sell
its roughly 14% stake in Lufthansa by October 2023 at the latest,
the airline said.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
November 12, 2021 07:01 ET (12:01 GMT)
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