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Shareholders in British Airways owner IAG back €2.74bn rights issue

British Airways owner IAG has secured a €2.74 billion capital increase with all new shares sold to boster its coronavirus-hit finances.

The funds will be used to reduce debt and help the airline group withstand a prolonged travel downturn.

New IAG chief executive Luis Gallego, who took over from Willie Walsh in September, said: “We’re delighted our shareholders have supported the capital raise.

“It strengthens IAG’s financial and strategic position.

“Together with the swift action we are taking to adjust our airlines’ costs, we now have a stronger balance sheet and improved liquidity.

“This gives us flexibility to deal with the current situation and places the group in a stronger position to take advantage of a recovery in air travel demand.”

The airline group, which also owns Aer Lingus, Iberia and Vueling, had already said that its largest shareholder, Qatar Airways, which has a 25.1% holding, had undertaken to subscribe for its pro-rata entitlement in the fully underwritten capital increase.

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