MIAMI – Deutsche Lufthansa AG says it has repaid all remaining government Stabilization funds received from the Federal Republic of Germany.
The repayment was made much earlier than expected, as announced in an LH Group press release today. This was possible primarily due to the rising demand for air travel, the quick restructuring of the Lufthansa Group, and the confidence capital markets are showing in the company.
The repayment of the Silent Participation II of the Economic Stabilization Fund of the Federal Republic of Germany (ESF) amounted to €1bn (US$1.14bn). This follows the company’s October repaying of Silent Participation I of €1.5bn (US$1.72bn).
In February, Lufthansa also paid off a KfW loan of €1bn.
Part of the agreement had the ESF taking an equity stake in Deutsche Lufthansa AG in return for the loans. Now that all has been repaid, the ESF will sell its stake which amounted to about 14% ownership. The sell-off will take place by October 2023 at the latest, per the press release.
“On behalf of all Lufthansa employees, I would like to thank the German government and the German taxpayers,” said Carsten Spohr, CEO of Deutsche Lufthansa AG.
“In the most serious financial crisis in our company’s history, they have given us a perspective for the future. This has enabled us to save more than 100,000 jobs. We are proud that we were able to keep our promise earlier than expected and repay the German financial aid. I would like to thank our employees for their great commitment. And, especially, our customers who have remained loyal to us in these challenging times.”
Remco Steenbergen, CFO of Deutsche Lufthansa AG, added, “Above all, I would like to thank our investors for their trust in our company. Without them such a quick exit from the Silent Participations would not have been possible. This trust is an obligation for us to consistently continue on the path we have taken to restructure and transform the Group.”
You can read the full press release on the Lufthansa Group website.
Featured image: Lufthansa Airbus A320neo Photo: Milan Witham/Airways