Lufthansa Gains Market Funding to Repay Part of German State Loan

Feb. 4—FRANKFURT — Lufthansa said on Thursday it would pay back part of the large loan from the German government to weather the pandemic with funds secured in a new loan taken out on the capital market.

The airline has secured additional commercial funding totalling 1.6 billion euros (1.9 billion dollars) that is due for repayment in two tranches in 2025 and 2028.

Lufthansa said it had now secured all its obligations of around 2.6 billion euros for this year and would repay funds to Germany's state-owned KfW development bank.

"This means loans totalling 1 billion euros will be repaid early to the KfW," the Frankfurt-based airline said.

As a result, the company will regain rights over aircraft that had been pledged as collateral.

"Despite the repayment, we will probably have to access other elements of the stabilization package that are currently not being used," Lufthansa chief financial officer Remco Steenbergen said.

The extent of this would depend on how the pandemic progressed, he added.

In the summer, Lufthansa secured a package from the German government amounting to some 9 billion euros.

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