Air Europa repaid a substantial portion of a loan received in May 2020 to mitigate the impact of the COVID-19 pandemic.
The airline, owned by Globalia, disbursed 53 million euros to settle part of a 141 million euro loan, which was provided by a group of banks and the Instituto de Crédito Oficial (ICO). It is expected that Air Europa will fully repay the loan by August this year, four years ahead of its due date.
The payment of these 53 million euros signifies Air Europa’s recovery from the COVID-19 crisis. This repayment is part of a financial liberation process, demonstrating the company’s ability to meet its obligations.
Thanks to profits earned during the historic summer season of 2023, Air Europa was able to make this early partial repayment.
With this repayment, the Hidalgo family-owned company reduces the financial burden of the loan, which had an interest rate of 8.107%, and paves the way for the purchase of Grupo Globalia by International Airlines Group (IAG).
The repayment operation was reviewed by the board of directors and subsequently approved by representatives of the State Industrial Holding Company (SEPI) fund.
Air Europa also received 475 million euros from the SEPI fund to overcome the crisis caused by the suspension of operations during the 2020 pandemic.
The commitment to the SEPI fund could be settled if the purchase of Globalia by IAG is confirmed. This transaction is currently under review by the European Commission in Brussels.
