Air France-KLM today announced the early repayment of €1 billion of the €3.5 billion outstanding on its French state-backed loan (“PGE”)

Rhea-AI Summary

Air France-KLM has announced the early repayment of €1 billion of a €3.5 billion state-backed loan, improving its debt profile and reducing financial costs. This decision is attributed to a significant recovery in operating performance, leading to a net cash position nearing €9.8 billion. The early repayment includes €800 million for a tranche maturing in May 2023 and €200 million for another maturing in May 2024. Overall, the outstanding amount of the loan is now €2.5 billion, with further repayments scheduled for May 2024 and 2025.

Positive

• Early repayment of €1 billion strengthens debt profile.
• Net cash position approaches €9.8 billion indicating strong financial health.
• Reduction of financial costs and exposure to floating rates.

Negative

• None.

Paris, 7 November 2022

Air France-KLM today announced the early repayment of €1 billion of the €3.5 billion outstanding on its French state-backed loan (“PGE”)

• The solid improvement in operating performance over the first nine months of the year have allowed 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 financial costs and limiting exposure to floating rates.

Continuing the positive trend observed in the first half of 2022, Air France-KLM published its third-quarter financial results on Oct. 27th that confirmed the strong improvement of its revenues, operating result and adjusted operating free cash-flow, allowing the Group’s net cash position to approach €9.8 billion.

In this favorable context, Air France-KLM has reached an agreement with the French state and the syndicate of nine banks participating in the PGE to proceed with the early redemption of €1 billion out of the €3.5 billion outstanding. This amount includes €800 million for settlement of the tranche maturing on May 6th, 2023, and €200 million of the tranche maturing on May 6th, 2024.

In December 2021, Air France-KLM had made an early repayment of €500 million out of the initial outstanding €4 billion. With this additional early repayment of €1 billion, the total outstanding amount of the PGE is reduced to €2.5 billion euros, with the following repayment profile:

• May 2024: partial redemption of €1.15 billion, leaving an outstanding amount of €1.35 billion,
• May 2025: final repayment of €1.35 billion (no further outstanding amount thereafter).

Investor Relations                                                        

Frédéric Kahane                 Michiel Klinkers                                

                                                     

frkahane@airfranceklm.com                        michiel.klinkers@airfranceklm.com

Website: www.airfranceklm.com

 

Attachment

• 20221107 - AFKLM_PGE update_Eng version

FAQ

What is Air France-KLM's recent financial announcement regarding its state-backed loan (PGE)?

Air France-KLM announced the early repayment of €1 billion of its €3.5 billion state-backed loan, improving its debt profile and reducing financial costs.

How much cash does Air France-KLM currently hold after its third-quarter results?

Air France-KLM's net cash position is approaching €9.8 billion after strong financial performance in the third quarter.

What are the future repayment dates for Air France-KLM's outstanding loan?

The future repayment schedule includes €1.15 billion due in May 2024 and €1.35 billion due in May 2025.

How much of the PGE loan has Air France-KLM repaid so far?

With the latest payment, Air France-KLM has repaid a total of €1.5 billion out of the initial €4 billion PGE loan.

What implications does the early loan repayment have for Air France-KLM's financial costs?

The early repayment will lower financial costs and limit the company's exposure to floating rates.