KLM Royal Dutch Airlines has announced that it will be repaying the final portion of €277 million of the loans secured from the Dutch government and the banks in 2020. KLM borrowed a total of €942 million from the credit facility of €3.4 billion. This repayment means that two years on, KLM will have redeemed all the portions it used of the loan package received to deal with the Covid-19 crisis and to safeguard its future.
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 made it possible for KLM to make two repayments earlier this year against the total loan amount of €942 million.
In three steps, the total amount has now been redeemed. 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.
KLM states that it is “incredibly grateful to the Dutch government and the banks for their support during the pandemic. By repaying its loans as quickly as possible, KLM shows that it takes its responsibilities seriously and that it keeps its promises to its financial stakeholders, government and society”.