Coronavirus: British Airways extends loan facility to $1.38bn

British Airways has extended its credit facility to $1.38 billion to help it deal with the financial impact of the coronavirus.

The loan will be available for one year from June 23.

BA parent IAG said it has financing facilities worth a total of €2.1 billion currently, compared to €1.9 billion at the end of 2019. IAG has not drawn down on any of its group facilities, the company said.

Chief financial officer Stephen Gunning said IAG “continues to have strong liquidity with cash, cash equivalents and interest-bearing deposits of €7.2 billion as at 27 March”.

“Total cash and undrawn facilities are currently €9.3 billion,” he said.

Despite this, the group is exploring several “operational and treasury initiatives” to improve cash flow and liquidity.

BA is the latest travel business to secure additional loan facilities amid the ongoing pandemic.

On Friday, Tui Group said it is to receive a bridging loan from the German government worth €1.8 billion to bolster its credit line.

Meanwhile, the world’s biggest cruise operator Carnival Corporation is working with JP Morgan to raise $7 billion.

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