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World

22. 09. 2021. 00:00   >>  15:06 0

GERMANY

Lufthansa to issue new shares to repay state aid

The €2.14 billion capital increase will shore up the German flag carrier's finances and help pay off a government bailout secured at the height of the COVID-19 pandemic.

German airline Lufthansa said Sunday it would seek to raise more than €2 billion ($2.35 billion) through a share issue, as it looks to bounce back from the COVID-19 pandemic.

 

Aviation was among the sectors hardest hit by lockdowns and international travel restrictions and Lufthansa was one of several airlines forced to secure a government bailout.

 

Europe's largest airline group said it hoped the capital increase would help raise €2.14 billion to improve its equity position and help repay the €9 billion in state aid that helped save it from bankruptcy.

 

Lufthansa said its executive board had agreed to the share issue, which will run from Wednesday for two weeks.

 

The price is set at €3.58 per new share.

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