Finnair releases cash with Airbus A350 sale-leaseback deal
Reuters
Published Aug 25, 2020 02:33AM ET
Updated Aug 25, 2020 02:50AM ET
(Reuters) - Finnair (HE:FIA1S) has finalised a sale and leaseback arrangement for one of its new Airbus A350 planes as the airline grapples with the pandemic's impact on travel.
"The immediate positive cash effect for Finnair is in excess of 100 million euros ($118 million)," the company said.
Airlines across the world have been scrambling to improve their cash position and slash costs after lockdowns to contain the coronavirus brought global air travel almost to a halt.
Finnair said it sold the Airbus A350 aircraft delivered in February 2020 to Nomura Babcock & Brown and leased it back for its own operation, initially for 12 years.
The deal has no major impact on Finnair's operating result for the third quarter of 2020, it said.
Finnair plunged to a second-quarter loss and said it would make a similar loss this quarter, despite operating more flights.
Finnair raised 501 million euros last month from an oversubscribed rights issue and has also received state and bank guarantees for a 600 million euro loan.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.