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Airline debt has jumped 23% since 2020 to $ 340 billion, according to data compiled by Bloomberg. So far this year, sales of bonds and loans to global airlines have reached around $ 63 billion.
The growth in debt is further proof that the industry is facing a bumpy road, with many border restrictions still in place and the end of the summer vacation season in the United States and Europe.
EasyJet and Japan Airlines announced new plans to raise funds this month to help it cope with the protracted pandemic.
“The spread of the delta variable could lead other countries to impose stricter quarantine rules on visitors,” said Susanna Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Several airlines are exploiting the bond market again, while strong bond sales show investors’ willingness and willingness to provide significant financing to the industry.
EasyJet has raised $ 400 million in new debt and £ 1.2 billion ($ 1.7 billion) in equity. The funding will provide a buffer to withstand a slow winter and position the carrier for a temporary resumption of leisure travel.
Japan Airlines has secured nearly 300 billion yen ($ 2.7 billion) in new financing through bonds and subordinated loans. Japan Airlines said the money would also be used to modernize its fleet by purchasing Airbus 350-1000 jets to be the flagship of the international airline.
Australian company Qantas Airways has also announced its intention to sell the bonds.
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