World Bank Grants $40 Million Funding Boost to Madagascar Airlines

Madagascar Airlines (MD, Antananarivo) has confirmed that the World Bank has approved a second tranche of USD 40 million as part of a USD 65 million financing package, following positive progress under the airline’s “Phenix 2030” turnaround plan. The first installment of USD 25 million was disbursed in September 2024 through the World Bank’s Economic Transformation for Inclusive Growth Project (PIC3) for Madagascar.

The Malagasy government reaffirmed its full backing for the national carrier and said it is finalizing the remaining 20% of conditions required for the release of the funds, expected to be met by the end of November.

Madagascar Airlines expects to post a positive operating result for the current fiscal year — a milestone achievement after years of losses. The airline also plans to convert its outstanding state-held debt into share capital, a move aimed at strengthening its balance sheet and financial stability as it continues restructuring efforts under the Phenix 2030 program.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com