The IAG airline, a parent company of British Airways, among others, wants to raise nearly EUR 2.8 billion with a new share issue to withstand the COVID crisis. In the first half of the year, the company suffered a loss of billions due to the effects of the pandemic, which made international air travel virtually impossible.

With the proceeds of the issue of shares, IAG aims to reduce its enormous debt burden and to improve liquidity, in other words the ability to meet short-term financial commitments. The group’s net debt has increased by EUR 3 billion since the turn of the year to a total of EUR 10.4 billion.

In the first six months, IAG’s turnover, also the owner of Iberia and Vueling Airlines, fell by 56% to EUR 5.3 billion. The company then suffered a loss of EUR 3.8 billion. The main shareholder of IAG, branch Regent Qatar Airways, has already agreed to the proposed share issue. Qatar Airways accounts for over 25% of IAG. The capital issue should be completed by September.