Brussels Airlines has used all of the 290 million euros released by the State to get through the coronavirus crisis, said Belgian Finance Minister Vincent Van Peteghem in an answer to a parliamentary question. Further help is currently not required.
The state aid in the form of a loan was decided in July 2020 and approved by the European Commission in August 2020 as part of an agreement between the Belgian federal government and Lufthansa, the German parent company of Brussels Airlines. The government injected 290 million euros and Lufthansa 170 million.
In December 2020 and February 2021, Brussels Airlines had already used two tranches of aid, for an amount of 190 million euros. The rest did follow later in 2021.
According to the Minister of Finance, the airline does not intend to request additional financial support. “But it remains very important that the aviation and travel sector can move towards a gradual normalisation of supply by the summer in order to finally be able to generate sufficient income again,” he said.
Brussels Airlines has been strongly affected by the coronavirus crisis, like most European airlines. A restructuring plan has been implemented, with a reduction of 25% of the staff and 30% of the fleet. Brussels Airlines expects to break even this year and in the longer term an EBIT margin of 8% in 2024 which will allow for the fleet to increase again: a ninth Airbus A330 has already been added.
