Finnair (AY, Helsinki Vantaa) released the results of its rights offering on June 7, in which it said that a total of exactly 1,416,635,293 new shares were subscribed for, corresponding to 110.7% of the shares on offer.

Previously aiming at EUR500 million euros (USD565 million), a sum that is almost as much as its current market value, Finnair confirmed that the offering was slightly oversubscribed and that it consequently received gross proceeds of approximately EUR512 million (USD578 million) from the measure.

The 55.9% state-owned flag carrier outlined on June 10 that shareholders would receive one subscription right for each share, with each right entitling them to subscribe to ten offer shares at EUR0.40 (USD0.45) per share.

As a result of the offering, the total number of the shares in the company increased from 128,136,115 to a maximum of 1,407,401,265. The remaining offer shares were allocated to a secondary subscription, Finnair said.

The airline, which has issued two profit warnings this year, has also received state and bank guarantees for a EUR600 million (USD678 million) loan as it implements a financing plan that includes drawing on available credit lines, as well as aircraft sale-leasebacks.

Meanwhile, the Finnish flag carrier reported in a separate statement on the same day that there was a 96% drop in June passenger numbers, year-on-year, as the coronavirus kept most of its flights grounded.

“The Covid-19 pandemic impact was still clearly visible in the June traffic figures, but the number of passengers more than doubled from May 2020 and cargo-only demand remained strong,” it said.

There were no scheduled flights to Asia during the month and only one North Atlantic scheduled flight, which meant that Asian traffic was down 100% by available seat kilometres (ASK) and North Atlantic capacity by 99.5%. In European traffic, it was down 93.1%, in domestic traffic by 88.7%.