The help would consist of a 294-million-euro loan "as corona aid" as well as 256 million euros to refinance an earlier government bridging loan, Condor said in a statement.
German Economy Minister Peter Altmaier said the authorities would stand by Condor "through this difficult time."
"The company was operationally healthy and profitable in normal times and has good prospects for the future," he said in a statement.
Condor, which employs some 4,900 people, has been in trouble since parent company Thomas Cook went bankrupt last year.
Its woes deepened after Polish airline LOT this month ditched a plan to buy the German carrier, as the air travel industry is pummeled by the pandemic.
The European Commission said it had given Condor's lifeline the green light.
"This state-guaranteed 550-million-euro loan will allow Germany to compensate Condor, operating in the particularly hard-hit aviation sector, for part of the damage suffered due to the coronavirus outbreak," European Union competition commissioner Margrethe Vestager said.
German tourism giant TUI has already agreed a 1.8-billion-euro bridging loan from the government to help it through the turmoil.
Chancellor Angela Merkel last month unveiled a massive rescue package to shield Europe's top economy from the fallout from the pandemic.
Berlin has pledged more than 1.1 trillion euros in support for companies and employees, with Altmaier vowing that no healthy company should go under because of the coronavirus crisis.
Founded in 1956, Condor had 58 planes and employed 4,900 people when Thomas Cook declared bankruptcy last year, carrying 10 million passengers annually to destinations in the Mediterranean and the United States among others. – Rappler.com