Category: Financial

Spirit Airlines announced the closing of a private offering of US$850 million in principal amount of 8.00% senior secured notes due 2025 offered by two newly-formed Spirit subsidiaries. The notes are guaranteed by Spirit and secured by Spirit’s customer loyalty programs and brand intellectual property. “We’ve spent the past six months confronting the COVID-19 crisis head on and taking major steps to ensure our financial viability. We owe that to our valued Team Members, Guests and investors,” Spirit President and CEO Ted Christie said. “Our low fares and top-class reliability present a great value to consumers as travel demand builds Read more

Air Transat suspended all of its flights as of April 1, because of the COVID-19 pandemic and therefore had no more sales from that date, until the partial resumption of airline operations on July 23, 2020. As a result, these factors caused a steep fall in revenues. The corporation recognized revenues of CA$9.5 million during the quarter, a decrease of CA$689.4 million (98.6%) compared with 2019. Operations generated an operating loss of CA$132.0 million compared with operating income of CA$1.7 million in 2019, a deterioration of CA$133.7 million. The decline in operating results was accentuated by the unfavorable settlement of fuel-related derivative contracts. Transat Read more

Emirates has returned over AED 5 billion (US$ 1.4 billion) in COVID-19 related travel refunds to date, making strong and steady progress on its commitment to customers to complete pending refunds. More than 1.4 million refunds requests have been completed since March, representing 90% of the airline’s backlog. This includes all requests received from customers around the world up until the end of June, save for a few cases which require further manual review. Since the pandemic hit, Emirates has invested additional resources to ramp up its processing capability. The airline also continues to work with industry partners to facilitate Read more

The Qantas Group has confirmed a 10-year, AU$500 million unsecured bond issue as part of ongoing management of its debt maturity profile. Once settled, the proceeds will strengthen short-term liquidity and then be used to pay AU$400 million in bonds due to expire in June 2021. The coupon for the new bond, which was oversubscribed, is 5.25 per cent – significantly lower than the 7.5 per cent funding it replaces. The Group continues to have no financial covenants on any of its debt. Qantas is one of few airlines with continued access to long term, unsecured bond markets. Access to Read more

Spirit Airlines has reported that Spirit IP Cayman and Spirit Loyalty Cayman (the Issuers), each a newly formed Cayman Islands exempted company incorporated with limited liability and an indirect wholly-owned subsidiary of Spirit, intend to commence a private offering to eligible purchasers of US$600 million in aggregate principal amount of senior secured notes due 2025 (the Notes), subject to market and other conditions. The Notes will be guaranteed by Spirit and certain subsidiaries of Spirit. The Notes will be secured by, among other things, a first priority lien on the core assets of Spirit’s loyalty programs (comprised of cash proceeds Read more

The Regional Express (Rex) Group has released its preliminary final report announcing a statutory loss after tax of AU$$19.4 million, on a turnover of AU$$321.8M for the financial year 2020 (FY20). Rex Executive Chairman Lim Kim Hai said, “The COVID-19 pandemic devastated almost every industry with aviation being hit the hardest. Even Rex, which had virtually no debt and strong cash flow in the past, was brought to its knees with passenger numbers plummeting90% between March 15, 2020 and March 28, 2020. Passenger revenue declined by AU$65 million in the last quarter of FY20.” “The Rex Group managed to post Read more

Swissport has agreed to a comprehensive restructuring with creditors and shareholders including a debt-for-equity swap and a new €500 million long-term debt facility. The restructuring will deliver a significant deleveraging for the company. Swissport has also finalized the €300 million additional interim facility. Following the announcement on August 21, 2020 of an agreement ‘in principle’, Swissport has now entered into binding agreements on a comprehensive restructuring and refinancing (the Lock-Up Agreement) and on a €300 million super senior interim debt facility. “Today’s binding agreements secure Swissport’s long-term future. We are pleased that a consensual deal has been reached with a Read more