Germany plans to sell up to a quarter of its 20 per cent stake in Lufthansa (LHAG.DE) over the coming weeks, the German finance agency said on Monday, citing positive developments at the bailed-out airline.

The state’s 20 per cent stake was acquired for €300 million ($353.67 million) as part of a bailout for the German carrier as the company and the entire aviation sector took a battering from the coronavirus crisis.

The Federal Government announced the 20 per cent stake initially to help the airline mitigate the effects of the global pandemic. The bailout effectively saved the airline from bankruptcy in June 2020.

This investment came by way of the Economic Stabilization Fund (WSF), which was established in March 2020. The fund’s core objective was to stabilize major German companies and by doing so, preserve jobs.

Lufthansa had received a €6 billion package from Germany’s economic stabilisation fund (WSF), which was set up to help companies to ride out the pandemic.

Both the German government and the airline have indicated that they want the company to regain fiscal independence as soon as possible.The WSF has said it would sell the complete stake, which is currently worth more than €1 billion, before the end of 2023.

Lufthansa plans to issue new shares, probably before the Sept. 26 parliamentary elections, to help it to return bailout money to taxpayers.

Shareholders have approved a potential capital increase of up to €5.5 billion.

Lufthansa managed to halve its losses in the second quarter of 2021 compared with the same period last year, Deutsche Welle reported. That came as travel restrictions began easing and more passengers took to the skies.

The airline has seen positive cash flow since the start of the coronavirus crisis and is expecting a return to profitability within this year.

The airline has also undergone stringent cost-cutting measures to help shore up finances. There have been more than 30,000 job cuts, and the fleet of 800 aircraft will be whittled down to 650 by 2023.

($1 = 0.8482 euros)