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IAG raising €1bn to ‘withstand prolonged downturn’

British Airway owner International Airlines Group is raising €1 billion through two bond offerings.

The action is being taken to help the group “withstand a more prolonged downturn in air travel”.

The net proceeds will be for general corporate purposes by the airline group as the aviation sector seeks to recover from the Covid-19 crisis.

The funds will help strengthen IAG’s balance sheet and increase its overall liquidity position.

The money, coming in two tranches, will also provide IAG with the operational and strategic flexibility to take advantage of a recovery in demand for air travel.

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