Swiss International Air Lines repaid a state-guaranteed loan to support it during the pandemic ahead of schedule as it returned to positive cash flow in the first quarter after two years of losses, the Lufthansa subsidiary LHAG.DE said.
Announcement adds to positive news from Lufthansa, Air France-KLM AIRF.PA and other Airlines companies as people rush to book long-awaited vacations after COVID-19 restrictions are lifted.
Swiss began a restructuring in the summer of 2021, reducing its fleet by around 15% and cutting around 1,700 full-time jobs by the end of 2021.
“The measures we have initiated are having an impact. After cumulative losses of more than one billion Swiss francs ($1.02 billion) over the past two years, we have now regained financial stability,” Markus Binkert, CFO of Swiss Airlines companiessaid in a statement.
this allows Swiss to stop receiving state aid and finance itself on the capital market via the Lufthansa Group thanks to the more stable pandemic situation and the lifting of travel restrictions, Binkert said.
The Swiss government welcomed the early repayment, saying the support Swiss resulted in no loss to the state.
Statement by the Swiss Minister of Finance
“The good relations and mutual trust have paid off,” Swiss Finance Minister Ueli Maurer said in a statement released by the Swiss Federal Council.
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