Swiss International Air Lines (Swiss) has returned to financial stability following state-backed financial support and a company restructure in 2021, the carrier announced on Thursday.
Part of the Lufthansa Group, Swiss ended its bank loan facility guaranteed by the Swiss Confederation last month, more than two years ahead of the 2025 end date.
The carrier stated that it never drew more than half of the total loan amount available under the facility, which was established to combat the fallout from the Covid-19 pandemic, and paid a total of CHF 60 million (EUR 57.5 million) in interest and fees during the loan facility period.
Swiss was also supported by CHF 500 million in loans from the Lufthansa Group and stated it will meet its future financing needs on the capital markets via the Lufthansa Group.
Meanwhile, the airline’s 2021 restructure saw it downsize its fleet by some 15 per cent and its workforce was reduced by 1,700 full-time positions.
Swiss chief financial officer, Markus Binkert, said the company’s actions are now having an effect.
“After incurring cumulative losses of more than CHF 1 billion in the past two years, we have now been able to return Swiss to financial stability, and generated a positive cash flow in the first quarter of this year,” he said.