EgyptAir has fully settled its accumulated debt of US$205 Million (10 billion EGP) to the Egyptian General Petroleum Corporation (EGPC) at the end of the last fiscal year 2023-2024, according to two government officials who spoke to Asharq on the condition of anonymity.

The state-owned airline’s debt began accumulating to the petroleum authority in 2011, following the January 25 protests that led to the ousting of former President Hosni Mubarak, which caused a decline in air traffic due to the unstable conditions at the time. However, the company has been stabilizing over the past five years, returning to profitability, according to one official.

Another government official told Asharq that EGPC offered EgyptAir the option to exchange its fuel debt for land and assets owned by the airline, but the company chose to pay off the debt from its profits after air traffic improved over the past three years.

Debt Repayment Regularity

In June 2020, the Egyptian Cabinet approved the agreement concerning the debt owed to Egypt Petroleum Company by EgyptAir. The agreement included waiving 50% of the late payment interest specified in the contract between the two companies, with the remaining debt to be repaid in installments over eight years, and granting EgyptAir a one-year grace period before starting the repayment.

A government official confirmed to Asharq that EgyptAir is currently regular in paying for the fuel it receives immediately.

Egypt’s annual production of jet fuel is 1.25 million tons, with 1 million tons consumed domestically by aircraft, while the remaining 250,000 tons are exported, according to data from EGPC.

EgyptAir Recent Improvements

It is worth noting that EgyptAir has recently improved, securing the second place in the Skytrax category for the world’s most improved airlines. This accolade highlights the company’s significant global rankings and overall performance improvement.

Additionally, EgyptAir ranked seventh among the best airlines in Africa, with Ethiopian Airlines leading the list. EgyptAir, one of the oldest airlines in the world and the first in Africa, has frequently appeared in the list of the world’s top 100 airlines throughout the history of the award, including in 2011, 2012, and 2022.

Have you flown with EgyptAir recently? We’d love to hear about your experience in the comments section below!

• Featured image by Dirk Grothe | planespotter.net