Saturday, December 3, 2022
Airlines: Capital raised in response to Covid-19

Airlines: Capital raised in response to Covid-19


As airlines and governments around the world rush to buffer airline balance sheets, we detail the amount and sources of capital key airlines have raised amidst the Covid-19 aviation downturn.

British Airways (Part of IAG)

GBP 0.3bn from the UK Covid Corporate Financing Facility (“CCFF”). For all intent and purposes, the amount appears insignificant and the airline has stated that it would primary rely on cost rationalization to tide through the period.

Ryan Air and Easy Jet

Each of the regional LCC carriers have raised GBP 0.6bn from the UK CCFF


US Based LCC JetBlue has raised US$ 0.94bn in total. comprising US$ 0.69bn in state grants and US$ 0.25bn in loans

Iberia and Vueling (Part of IAG)

The Spanish government has extended EUR 1bn worth of loans for the two carriers, contrasting the lack of support for sister airlines British Airways.


Emirates has reportedly received US$ 1.2bn in state funding. Of note, the Middle-Eastern carrier has historically benefited from opex subsidies from the state as it positions itself as a key global air-hub.

United Airlines

Notwithstanding a failed bond issuance, the airline has raised US$ 6.1bn in total. Aside from US$ 1.1bn in equity raised, the airline has received US$ 5bn in payroll assistance from the treasury, comprising US$ 3.5bn in grants and US$ 1.5bn in loans.

American Airlines

American Airlines have reportedly raised US$ 7.8bn in total. This includes US$ 5.8bn from the Treasury comprising US$ 4.1bn in grants and US$ 1.7bn in loans. The airline has separately secure c.US$ 2bn in funding from other sources including a US$ 1bn credit line.

Airfrance KLM Group

The group secured EUR 7.0bn in funding. This includes EUR 4.0bn in loans from a syndicate of 9 banks, which are 90% guaranteed by the French State; as well as EUR 3.0bn of loans from the French State itself.

Delta Airlines

Delta has secured US$ 10.4bn in total funding. The airline tapped on US$ 3.8bn of grants and US$ 1.6bn of loans from the Treasury; US$ 3.5bn in new debt issuance and secured a US$ 1.5bn credit facility.

Singapore Airlines

The national carrier secured US$ 13.3bn in funding. Aside from US$ 2.8bn in bridge loan from local bank and sister company DBS, the airline has raised US$ 6.2bn through 2 tranches of rights issuance and US$ 4.3bn in convertible bonds.

Southwest Airlines

By far the largest capital raising effort, Southwest Airlines has raised US$ 13.9bn in total. This includes: US$ 3.2bn in Payroll assistance from the Treasury, US$ 6.2bn in other loans, US$ 2.2bn in convertible bonds, US$ 2.2bn from share issuance, US$ 1bn draw down of a revolving credit facility and US$ 0.8bn from aircraft sale and leaseback.

Lufthansa (Pending)

As of 24 May 2020, Lufthansa has reached a deadlock in its EUR 9bn state funding negotiation. The airline is reportedly unwilling to accede to the terms of the deal which demands a 20% stake in the company. In parallel, subsidiary Swiss Air has secured EUR 1.4bn in state backed bank loans form the Swiss government.

Subsequent Updates

In view of dynamism of the situation, the above will be updated progressively. Follow industryview.org to receive subsequent updates.

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