Air France-KLM today announced the early repayment of 1 billion euros of the outstanding 3.5 billion euros of its French government-guaranteed loan (“PGE”)
- The solid improvement in operating performance over the first nine months of the year has enabled the Group to accelerate the repayment of financing received during the Covid-19 crisis.
- This early repayment will improve the group’s debt profile by reducing financing costs and limiting exposure to variable interest rates.
Continuing the positive trend observed in the first half of 2022, Air France-KLM published its financial results for the third quarter on October 27th, confirming the strong improvement in its revenues, operating results and adjusted free cash flow, reflecting the group’s net liquidity enabled position towards EUR 9.8 billion.
In this favorable environment, Air France-KLM has reached an agreement with the French State and the consortium of nine banks participating in the PGE for the early repayment of 1 billion euros of the outstanding 3.5 billion euros. This amount includes €800 million for the settlement of the tranche due May 6, 2023 and €200 million for the tranche due May 6, 2024.
In December 2021, Air France-KLM made an early repayment of 500 million euros of the initially outstanding 4 billion euros. With this additional early repayment of 1 billion euros, the total outstanding amount of the PGE is reduced to 2.5 billion euros with the following repayment profile:
- May 2024: partial repayment of €1.15 billion, remaining amount of €1.35 billion,
- May 2025: Final repayment of €1.35 billion (no outstanding amount thereafter).