KLM is repaying the final portion of €277 million of loans secured from the Dutch Government and banks in 2020. In total, the carrier borrowed €942 million from a credit facility totaling €3.4 billion.
On Thursday (June 30, 2022) KLM Royal Dutch Airlines announced that they are repaying the final portion o €277 million of pandemic-related loans secured from the Dutch Government and banks in 2020. KLM borrowed a total of €942 million from a credit facility of €3.4 billion, and two years on has repaid all portions of the utilized loan package. This was made possible by a sharp reduction in costs, the departure of 6,000 team members, the lifting of travel restrictions and rising air travel demand. The carrier repaid the total outstanding balance of €942 million in three steps, with a €311 million payment to the banks on May 3rd, another €354 million to banks on June 3rd, and now the remaining €277 million to the Dutch Government.
In Thursday’s announcment, KLM’s President & CEO, Pieter Elbers, 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.”
Also commenting on the loan repayment, KLM’s incoming President & CEO, Marjan Rintel, added,
“I’m pleased with this important step taken by KLM. Moving forward, I can and will build upon this to achieve even better financial health for KLM in the future.”
Source: KLM Royal Dutch Airlines