IAG: shares fall after quarterly loss and capital increase

(CercleFinance.com) - British Airways' parent company, International Airlines Group, reported a second-quarter loss as passenger capacity operated in the period collapsed by over 95% due to the Covid-19 crisis.


IAG reported a net loss of 2.1 billion dollars in the three months to 30 June, compared with a profit of 736 million euros in the same period last year.

Passenger revenue was wiped out - down 97% to just 160 million euros.

To cope with this situation, IAG said it will make a capital increase of up to 2.75 billion euros to improve its balance sheet and liquidity position.

The airline group's largest shareholder, Qatar Airways, has committed to support the deal.

But investors gave a lukewarm reception to the company's decision to boost capital, with the IAG stock down almost 7% this morning on the London Stock Exchange.

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