Tuesday, 12 March 2019

Troubled Icelandair puts up 757's as security for $80 million loan

The troubled Icelandair Group has confirmed it has put up 10 of its Boeing 757 aircraft as security for yet another loan, this time its for US$80 million.  The deal was agreed with an Icelandic financial institution and is based on a 5-year term. Icelandair expects that the loan amount will be used as a partial redemption of Icelandair Group’s issued bonds.

Last year Icelandair suffered a net loss of $55.6 million, compared to a net profit of $37.5 million in 2017. The new loan will take Icelandair Group's debt mountain to nearly $500 million according to the firms 2018 annual report.