BA-owner IAG looking at options, but not a rights issue

British Airways owner IAG is examining all options to cope with a volatile business environment, but does not need a rights issue for now because it can see bookings recover, its boss said. CE Luis Gallego said the airline group was recovering from the turmoil of the pandemic but that in an uncertain environment it would be negligent not to look at different scenarios and how best to address them. "We don't have a plan right now to do a rights issue because in the current circumstances that we have, we see the recovery of the business, we see the high level of bookings," he said. Gallego replaced Willie Walsh in September 2020 to run one of the biggest airline groups in the world, seeking to steer a company that also owns Aer Lingus, Iberia and Vueling through the biggest crisis in modern aviation. Since the pandemic hit, IAG has had to scrap thousands of jobs, raise billions of euros and navigate frequently changing COVID restrictions, before the outbreak of war in Ukraine shut vast swathes of airspace and pushed the price of oil higher. He said in an unpredictable environment IAG was analysing scenarios for the business - "and always we have in mind that what we want is to maximise shareholders' value." Asked if the group, with E11.7b of net debt, would consider asset sales or partnerships with other airlines, Gallego said: "We would be negligent if we don't analyse all of these scenarios because the world is very uncertain now and we need to analyse all of them." Bernstein analysts said on Monday IAG did not need an equity fundraising because it had enough liquidity, but that it could pursue one to gain flexibility, though not at a steep discount.<br/>