El Al Israel Airlines intends to pay back a $45 million loan it received from the government during the COVID-19 outbreak by the end of the year according to the report we gathered.
The government provided the airline with the loan as part of a package to help it weather the crisis, which saw Israel’s borders closed to foreign tourists for over two years.
The state will advance El Al’s security payments of $20 million by December 20 in exchange for the state delaying El Al’s planned $62 million share sale until April 2023, according to the agreement between the ministry and El Al. As part of a recovery plan required by the government to get a $210 million aid package during the height of the epidemic, El Al, which had recorded losses for four years and accrued debt to update its fleet, lay off 1,900 people – roughly one-third of its personnel.
Numerous expenditure limitations on El Al will be lifted or made easier by loan repayment. It will enable it to modernize its route network, rent new aircraft, make working capital investments, and create new revenue streams. Until 2028, El Al will continue to be prohibited from paying dividends.