Airlines receive loans of US $ 31,000 million to face COVID-19 ELESPECTADOR.COM

US companies they account for most of the loans, with almost $ 20 billion in total. For their part, Europeans have raised US $ 7.4 billion since March 9.

Credit institutions around the world have pledged more than $ 31 billion in loans to major airlines, which are struggling to obtain financing, as the COVID-19 pandemic forces them to leave their fleets on the ground.

US companies account for the bulk of the loans, with nearly $ 20 billion in total, according to data compiled by Bloomberg. To secure financing, airlines have been using existing lines of credit or taking new loans.

The pandemic raises an unprecedented challenge for aviation and tourismsince governments around the world have closed airports to stop the spread of the virus.

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Airlines have stamped out to borrow from governments and banks. In addition to loans to US airlines, European ones have raised $ 7.4 billion since March 9, while Asian companies have accumulated $ 4.1 billion.

The International Air Transport Association (IATA) has repeatedly warned that the health crisis could bankrupt half of the world’s airlines and has pressured countries like France and the Netherlands to prepare state bailouts.

Air France-KLM, the largest borrower in the sector, obtained loans for 4,000 million euros from six banks, and the French State guarantees 90% of said amount. In addition, the airline received a loan of 3,000 million euros from the government, which is a direct shareholder. The company had previously drawn on an existing credit line of € 1.1 billion.

UK EasyJet Plc also raised $ 744 million from government fund Covid Corporate Finance, in addition to a bank loan of approximately £ 400m. The airline turned to an existing revolving loan of $ 500 million.

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In Asia, borrowers have drawn on funds from national lenders. The Bank of Taiwan provided $ 666 million in direct loans to China Airlines Ltd. and Eva Airways Corp., while Singapore Airlines Ltd. obtained a $ 2.8 billion loan from DBS Bank Ltd.

Meanwhile, at least $ 5 billion in deals are still in the pipeline, including loans for Emirates Airline, Japan’s ANA Holdings, and Iberia, the Spanish division of IAG SA, which also owns British Airways.

Among the main borrowers in the sector are Air France-KLM, Delta, American Airlines and Southwest Airlines.