BA parent IAG launches E2.75bn rights issue as losses swell
BA owner International Airlines Group has launched a E2.75b emergency fundraising, supported by its biggest shareholder Qatar Airways, to see it through the Covid-19 pandemic that has thrust the industry into a historic crisis. The group confirmed the rights issue, which it said it was considering last week, as it unveiled a Q2 loss for the three months to the end of June of more than E2b after its passenger business collapsed. Willie Walsh, CE at IAG, said the airline group had lost more in this quarter than it had ever lost in a year and was “facing an unprecedented crisis”. “Anybody who thinks these are short-term issues and challenges that can be resolved by short-term measures, I think fails to understand the scale of the challenge,” he said. The news drove IAG shares down 7% to 168p — their lowest since 2012 — by Friday afternoon. The stock has lost about 60% of its value in the past 12 months. The slower recovery faced by network carriers such as IAG was highlighted by the group downgrading its passenger capacity outlook for the peak summer months — July, August and September — to just 26 % of last year’s levels, compared with its previous plan to fly about 45%.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-08-03/oneworld/ba-parent-iag-launches-e2-75bn-rights-issue-as-losses-swell
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BA parent IAG launches E2.75bn rights issue as losses swell
BA owner International Airlines Group has launched a E2.75b emergency fundraising, supported by its biggest shareholder Qatar Airways, to see it through the Covid-19 pandemic that has thrust the industry into a historic crisis. The group confirmed the rights issue, which it said it was considering last week, as it unveiled a Q2 loss for the three months to the end of June of more than E2b after its passenger business collapsed. Willie Walsh, CE at IAG, said the airline group had lost more in this quarter than it had ever lost in a year and was “facing an unprecedented crisis”. “Anybody who thinks these are short-term issues and challenges that can be resolved by short-term measures, I think fails to understand the scale of the challenge,” he said. The news drove IAG shares down 7% to 168p — their lowest since 2012 — by Friday afternoon. The stock has lost about 60% of its value in the past 12 months. The slower recovery faced by network carriers such as IAG was highlighted by the group downgrading its passenger capacity outlook for the peak summer months — July, August and September — to just 26 % of last year’s levels, compared with its previous plan to fly about 45%.<br/>
