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Coronavirus: IAG axes shareholder dividends

International Airlines group (IAG) has announced it will scrap dividend payments this year.

Shareholders were due to receive €0.17 euros per share but the cash will instead be added to the group’s voluntary reserve.

The British Airways parent said its annual shareholder meeting would be postponed from June until the end of September.

Earlier on Thursday BA announced it planned to furlough 36,000 staff as a result of the coronavirus pandemic which has forced the grounding of most flights.

A deal is reported to have been reached with the Unite union covering up to 80% of the workforce.

Those affected are expected to receive some of their wages through the government’s coronavirus job retention scheme, which covers 80% of salary capped at a maximum of £2,500 a month.

BA has been running government repatriation flights this week to get hundreds of British nationals home from Peru, after the country went into lockdown.

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

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.

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