By Mauro Orru
Shares of Air France-KLM jumped in Thursday morning trading after the Franco-Dutch carrier group repaid the remaining tranche of a 4 billion-euro ($4.23 billion) loan it had received from a consortium of banks and the French state at the height of the pandemic.
At 0830 GMT, Air France-KLM shares traded 3.3% higher at EUR1.61.
Air France-KLM said in a statement Wednesday that it had repaid the remaining EUR2.5 billion tranche of its loan by using EUR1.5 billion in cash and EUR1 billion it raised from a sustainability-linked bond.
“This full repayment will contribute to smoothing the group’s debt profile, reduce financial costs and limit residual exposure to floating rates, and marks a final step towards the full repayment of the current French State liquidity support measures,” the company said.
Airlines around the globe were fighting for survival as they confronted an array of limits on air travel at the height of the pandemic, with many resorting to state-backed loans.
Write to Mauro Orru at email@example.com; @MauroOrru94
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