KLM repays remainder of loan to Dutch government
KLM Royal Dutch Airlines 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 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.
“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.” - Pieter Elbers – President & CEO KLM Royal Dutch Airlines
“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.” Marjan Rintel - Upcoming KLM President & CEO.
KLM - Royal Dutch Airlines is nominated as Europe’s Leading Airline 2022, Europe’s Leading Airline - Business Class 2022, Europe’s Leading Airline - Economy Class 2022, Europe’s Leading Airline Brand 2022, Europe’s Leading Airline to Africa 2022, Europe’s Leading Airline to Asia 2022, Europe’s Leading Airline to North America 2022 and Europe’s Leading Airline to South America 2022 by World Travel Awards.