Icelandair plans new share issue to prop up financial position

Icelandair Group is preparing to issue new shares to shore up its liquidity and strengthen its financial position during the coronavirus-driven downturn. The company has yet to disclose the size of the share issue planned. But it says the intention of the offer is to ensure its “long-term competitiveness” after its flight schedule was cut by some 90% and it faces a possible “extended period of minimal revenue”. Icelandair Group adds that it want to give itself the ability to respond rapidly to changes in the market once signs of recovery emerge. As part of the financing plan the company is holding discussions with lenders, lessors and suppliers. Icelandair Group has also been holding talks with the Icelandic govt. <br/>