The Lufthansa group returned the financial aid to the German government

The repayment was made earlier than planned and was made possible thanks to the reorganization, the trust of the capital markets in the group and mainly thanks to the increase in demand for travel

A Lufthansa plane takes off. The group returned the financial aid to the state. PR photo

On Friday (November 12, 2021) announced Lufthansa Group On the refund of financial assistance received by the German government. The repayment was made earlier than planned and this was made possible mainly due to an increase in demand for flights, the reorganization of the Lufthansa Group and the confidence of the capital markets in the company.

Count Carsten (Carsten Spohr), CEO of the Lufthansa Group, said: “On behalf of all the employees of the Lufthansa Group, I would like to thank the German government and the German taxpayers. In the most severe financial crisis in the history of our company, they gave us a perspective for the future. It has allowed us to maintain more than 100,000 jobs and we are proud that we were able to keep our promise earlier than expected and return the German financial aid, I would like to thank our employees for the great commitment and especially to our customers who remained loyal to us in these challenging times. Our ambition is to strengthen our position among the leading airline groups in the world. To this end, we will consistently continue to reorganize and transform the company.

Remco Steenbergen, Lufthansa Group’s CFO, said: “Above all, I would like to thank our investors for their trust in the company. Without them, such a quick exit from the crisis and the repayment of the grant would not have been possible. This trust is a must for us to continue consistently on the path we have taken. We are determined to further strengthen our balance sheet, increase profitability and generate attractive capital returns. Our financial targets published in June clearly show this. ”

In June 2020, Lufthansa Group shareholders paved the way for the Federal Republic of Germany’s assistance program. The German government package originally provided funds and loans totaling up to € 9 billion, of which the company withdrew a total of about € 3.8 billion. In November 2020, the company made a “comeback” in the capital markets with convertible bonds totaling 600 million euros and corporate bonds of one billion euros. In February 2021, the group again successfully issued € 1.6 billion worth of bonds.

Another bond issue came in July 2021 in the amount of one billion euros. In October 2021 the company successfully completed the capital increase. The proceeds from the capital increase amounted to 2.2 billion euros. Finally, on 9 November 2021, the Lufthansa Group was once again successfully active in the financial market and issued 1.5 billion euro bonds.

Lufthansa Group Photo PR
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