IAG is weighing options as it looks to emerge from COVID-19: Bloomberg

The parent of British Airways, IAG, is reviewing its strategy to help reposition the group as it emerges from the coronavirus pandemic, Bloomberg reported, citing people familiar with the matter.

According to the sources, the Anglo-Spanish multinational airline holding company is working with advisors to look at future business plans and liquidity needs.

IAG, which stands for International Airline Group, is exploring options including debt or equity fundraising, the insiders noted, asking not to be identified as the situation is still private.

Discussions are in the early stages and there is no guarantee what the outcome of the review will be at this time.

IAG, like many others in the travel and tourism sector, has been harshly hit by the effects of COVID-19 which left many countries on lockdown and consumers unable to travel.

The group, which also owns Iberia, is starting to emerge from the pandemic and has taken state financial support in the UK and Spain to help it through the outbreak.

Bloomberg observed that IAG and other airlines have outlined plans to reduce costs to realign operations for a future with fewer passengers.

British Airways is looking to cut around 30.0 per cent of its staff, which is around 12,000 jobs.

The news comes as Easy Jet was the first carrier to begin operating flights earlier this week.

More:  Dragoneer Growth seeks USD 600mn

Shares in IAG declined slightly to GBP 2.79 at 08:17 today, giving the business a market capitalisation of USD 5.55 billion.

The company is billed as one of the largest airline companies in the world with 598 aircrafts flying to 279 destinations and carrying around 118.00 million passengers each year.

IAG is a Spanish-registered company with shares traded on the London and Spanish stock exchanges.

During the three months ended 31st March 2020, the group generated revenue of USD 1.23 billion, up 10.8 per cent from USD 1.11 billion in the corresponding period of 2019.

Adjusted earnings before interest, taxes, depreciation and amortisation declined 14.3 per cent to USD 163.30 million in Q1 2020 (Q1 2019: USD 190.60 million).

© Zephus Ltd


More from: | Category: M&A News