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Thursday, September 28, 2023

KLM pays out the last €277 million in COVID-19 loans from the Dutch government

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KLM The final €277 million of loans obtained from the Dutch government to address the COVID-19 crisis will be repaid in full, according to Royal Dutch Airlines, which made the announcement.

This completes the repayment of the €942 million sum that was due under the €3.4 billion loan arrangement.

“In three steps, the total amount has now been redeemed,” the airline said in a statement.

“KLM paid €311 million to the banks on 3 May and another €354 million on 3 June, paying off the entire sum in bank loans of €665 million. By now repaying the remaining €277 million, KLM has also redeemed the portion of the loan issued by the Dutch government,” the statement continued.

The airline attributed this outcome to “various factors including the departure of 6,000 KLM staff members, a sharp reduction in costs, the removal of travel restrictions and the rising demand for airline tickets”.

Pieter Elbers, President, and CEO, KLM Royal Dutch Airlines said: “KLM colleagues battled their way through the COVID19 crisis in 2020 and 2021. The current operational situation at Schiphol is also demanding and again asks a great deal of our people and our customers. I’d like to sincerely thank everyone at KLM for their huge efforts.”

“This last repayment is therefore also a welcome crowning result of everyone’s efforts so far and serves as encouragement for the entire KLM workforce in facing these difficult times,” Elbers added.

Although KLM stated that the airline had “adequate financial resources available for the years ahead,” the airline will continue to have access to future loans after making the final loan payment.

“KLM will continue to have a credit facility of €2.4 billion (€723 million government loan and €1.735 billion from the banks) at its disposal, allowing it to make use of the existing financing options,” the airline said.

However, the airline also said that, despite the airline industry’s recent recovery, “the near future remains uncertain due to such factors as the high rate of inflation, rising costs, the constant presence of Covid-19 around the world, and geopolitical volatilities such as the war in Ukraine”.

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