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IAG mulls rights issue

The British Airways owner is considering a €2.75bn (£2.5bn) equity raise as it looks to recover from the Covid-19 crisis.
IAG mulls rights issue

International Consolidated Airlines Group (IAG) is weighing up a €2.75bn (£2.5bn) rights issue to shore up its balance sheet. The British Airways owner has been hit hard by the Covid-19 pandemic, posting a €535m adjusted operating loss in the first three months of 2020.

The group had €10bn of undrawn borrowing facilities at the end of April, although its half year results on 31 July will give a clearer indication of its finances. While a firm decision on an equity raise has yet to be made, the new UK quarantine rules on passengers arriving from Spain could add further impetus.

Taking the industry by surprise, the policy shift sent shares across the travel sector tumbling. TUI’s (TUI) shares fell by 11 per cent on Monday, while easyJet (EZJ), Dart (DTG) and IAG all finished the day down 8 per cent.

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