Shares of IAG S.A. (LON: IAG) fell nearly 6% on Friday after the owner of British Airways confirmed it is seeking to raise $3.27 billion to weather the crisis.
The cash is needed to survive the worst crisis that the aviation industry faced so far. The plan is supported by IAG’s biggest shareholder – Qatar Airways.
“These are really extreme times. We’re seeing a much slower and more gradual build-up,” Chief Executive Willie Walsh told BBC.
Empfohlener Broker
Multi Asset Platform
IAG reported an operating loss before exceptional items of 1.365 billion euros for the second quarter.
The company is operating only at 20% capacity, although it had expected to work at 50% capacity in July.
“This is worse by any measure, by many times,” said Walsh when asked to compare the current state of play with 9/11 or the global financial crisis.
The company, which also owns Iberia and Aer Lingus, developed a worst-case scenario that expects the full recovery to pre-coronavirus levels not before 2023.
Following a record quarterly loss, British Airways pilots accepted a pay cut of 20% and compulsory job cuts of around 270.
IAG share price closed at 170.55p – 5.79% lower on Friday amid a record quarterly loss. As a result, the IAG stock price closed over 14% lower on the week to trade near 8-year lows set in May.
- Read more about why IAG share price gained last week
- Start trading IAG stock
- Or check out some other stock brokers