Air France-KLM, the airline group comprised of Air France and KLM and their respective subsidiaries, announced that it has fully repaid its state-guaranteed loans given out by the French government.
The Franco-Dutch airline group repaid the remaining 鈧2.5 billion ($2.6 billion) from an initial 鈧4 billion ($4.2 billion) loan guaranteed by the French government in order to preserve businesses during the COVID-19 pandemic and subsequent lockdowns. France launched the state-guaranteed loan (pr锚ts garantis par l鈥櫭塼at 鈥 PGE) program in May 2020, lending around 鈧145 billion ($153 billion) to businesses across the country at the end of 2021.
According to Air France-KLM, strong revenues, improved operating results, and finally, a profit at the end of 2022, resulted in the group having 鈧10.6 billion ($11.2 billion) of cash at hand. Furthermore, 鈧1 billion ($1.06 billion) of proceeds from the sustainability-linked bond, which was issued in January 2023, allowed the airline group to 鈥渁ccelerate and close the repayment in full of the outstanding PGE鈥.
As outlined in the company精东影业 FY2022 financial results presentation in February 2023, Air France-KLM 鈥渞eached an agreement with the French State and the syndicate of nine banks participating in the 鈥淧GE鈥 to proceed with the full repayment鈥 of the loan.
鈥淭his full repayment will contribute to smoothing the Group精东影业 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,鈥 Air-France-KLM noted in its filing on March 15, 2023.
In total, the group earned 鈧26.4 billion ($28 billion) of revenue in 2022, ending the year with 鈧700 million ($743 million) of net income. In total, the operating free cash flow was 鈧1.9 billion ($2 billion) and at the same time, Air France-KLM reduced its net debt by 鈧1.9 billion ($2 billion) in 2022 compared to 2021.
