BA owner IAG is considering launching a rights issue of up to E2.75b to strengthen its balance sheet amid the coronavirus emergency. The airline group said on Friday it was “evaluating the merits” of the capital raising, but said that no decision had been made as to whether or when to proceed with a rights issue. IAG issued the statement following a news report by Reuters that suggested the group was considering a potential rights issue. It comes as airlines around the world have taken steps to shore up their balance sheets after lockdown forced them to ground entire fleets for months as the industry was hit by the worst crisis in its 100-year history. In April, IAG became one of the first airline groups to start restructuring its business, announcing plans to cut up to 12,000 jobs at BA, almost 30% of its workforce, as a result of the pandemic. Willie Walsh, CE of IAG, has previously warned that BA is “fighting for its survival” with passenger numbers not expected to return to pre-coronavirus levels for several years. He has said the pandemic is the “deepest crisis the company has ever faced”. In Friday’s statement, IAG noted that going into the crisis, the airline group had a strong balance sheet and liquidity with cash and undrawn facilities of E10b as of April 30. The company said: “IAG has taken appropriate actions to strengthen its balance sheet and boost its liquidity position.” Earlier on Friday the group announced it had extended its global commercial partnership with American Express, which will involve it receiving a payment of about GBP750m. <br/>
oneworld
Finnair plunged to a Q2 loss as the coronavirus pandemic kept most flights grounded, and said it would make a similar loss this quarter, despite an increasing number of flights. "As ramp-up is an investment, and there are costs associated with it, and Finnair will be running with clearly reduced capacity, the comparable operating loss in Q3 will be of a similar magnitude than in Q2," it said Friday. Finland's flagship airline, 55.8% state-owned, made an underlying operating loss of E174.3m in April-June, compared with a 47.2m profit a year earlier. The Q2 loss was in line with analysts' forecasts, but their consensus estimate for Q3 currently stands at E30.4m, according to Refinitiv Eikon data. Finnair plans to operate 25% of its flights in July and around 50% in September. "There are uncertainties relating to COVID-19 development and lifting of travel restrictions. As a result, the outlook remains unclear and the company does not provide revenue guidance for Q3," the airline said.<br/>
A woman was kicked off an American Airlines flight after she refused to wear a face mask onboard the aircraft. The unnamed female was videoed by a fellow passenger as she was forced to depart the service from Ohio to North Carolina on 19 July. The footage shows travellers cheering and clapping as she exits the plane. “You can clap all you want,” the woman can be heard saying as she leaves the flight after gathering up her bags. “Just leave, we’ve got flights to get,” shouts another passenger. Jordan Slade, who captured the incident on film, described the woman as “argumentative”. “She demanded to be boarded first and was causing an obvious scene,” Slade said. “Once boarded she was making phone calls and arguing with the attendant when asked to put her phone away. She also refused to wear a mask putting others on the flight at risk … Another passenger even got up to confront her about her behaviour with no mask.” The woman claimed to have a health condition that prevented her from wearing a mask. However, it is now mandatory for all passengers aged two and over to wear a mask on American Airlines flights.<br/>
Alaska Airlines hopes to complete its entry into Oneworld by the end of the year after the alliance formally invited the US carrier to become its 14th member. The airline had in February outlined its intention to join the alliance by the middle of next year after striking a partnership deal with Oneworld founding member American Airlines. Alaska’s wholly-owned subsidiary Horizon Air and regional partner SkyWest Airlines will join Oneworld as affiliate members. Joining the alliance will “improve connectivity and service for our guests throughout the West coast and beyond”, says Alaska CE Brad Tilden. “Oneworld will open up a tremendous international network for our business and leisure travellers when they’re ready to start flying overseas again, in addition to greater connectivity around the US through our network for international visitors.” <br/>