Deutsche Lufthansa AG is working with banks on a plan to raise about 3 billion euros ($3.7 billion) in equity to help repay its state coronavirus bailout, according to people familiar with the matter.
The timing and size of the capital increase will be subject to market conditions and could come as soon as June, the people said.
Europe’s largest airline received a 9 billion-euro state bailout last year after the coronavirus pandemic ended a decades-long boom in air travel. The new funding would provide enough cash to repay a chunk of a 5.5 billion-euro silent participation still held by the German state. Lufthansa’s executive pay and M&A activity is restricted until it’s repaid the government.
A spokesman for Lufthansa declined to comment. Shares of the carrier group, which also includes Swiss, Brussels Airlines and Austrian Airlines, have gained around 5% since the start of the year. BBG