By Dominic Chopping


Icelandair Group Hf. said late Monday it has given formal notice to terminate the government-guaranteed credit facility that has been in place through the pandemic.

In September 2020, the airline entered agreements with Islandsbanki Hf., Landsbankinn hf. and the Icelandic government for a credit facility of up to $120 million, with a 90% government guarantee and a two-year drawdown period to Sept. 15, 2022.

The credit facility was part of the company's financial restructuring to ensure access to liquidity in case of prolonged difficulties related to the pandemic.

"It is gratifying to announce our termination of the government-backed facility almost eight months ahead of schedule and without ever having had to draw on it," Chief Executive Bogi Nils Bogason said.

"As the aviation industry moves closer to normal operations, I am confident that we have what it takes to reach our primary objective coming out of the pandemic--to return to sustainable operating results."


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

02-08-22 0332ET