January 17, 2019 / 9:38 AM / 8 months ago

Flydubai taps banks for $300 million loan -sources

DUBAI, Jan 17 (Reuters) - State-owned Flydubai has approached banks for a $300 million syndicated loan, sources familiar with the matter said.

The debt facility is needed for aircraft pre-delivery payments, said the sources, who did not want to be named because the matter is private.

A flydubai spokeswoman said: “we are always looking at ways to further diversify our sources of funding and when we have a new announcement to make it will be made at the appropriate time.”

Airlines mainly pay for aircraft when they take delivery, not when they order them, but have to make downpayments as delivery approaches.

Rising fuel prices put pressure on flydubai’s operating costs last year.

In the first half of 2018 the airline reported net losses of 316.8 million dirhams ($86.26 million) versus a loss of 142.5 million a year earlier.

$1 = 3.6728 UAE dirham Additional reporting by Alaxander Cornwell; editing by Jason Neely

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