Shareholders approve capitalization increase of Lufthansa for 5.5 billion euros

Created on 25.05.2021 08:37

Lufthansa shareholders approved the additional capitalization of the airline, supporting the decision of the management to repay the government loan ahead of schedule, avoiding a significant increase in interest on loans.

According to the plan proposed by the management of the German Airline, additional capitalization actions will help to gain up to 5.5 billion euros. This amount is theoretical as it is based on the maximum amount of assistance offered by the government, that has not been fully utilized.

In mid-2020, at the height of a pandemic, the German government offered the airline € 6.8bn in aid, Lufthansa has been taken € 2.3bn and repaid € 1bn following a recent bond issue. Management is considering paying an additional € 1.5 billion in the second quarter of this year, as interest on a portion of the proposed amount will rise at the end of the year.

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