Aviation industry experts predict British Airways-based company could tap shareholders for more money
Aviation industry experts have predicted that British Airways’ parent company could tap shareholders for more money early next year.
The reopening of the US to foreign visitors who were completely vaccinated last week was a major boost for IAG, which is now expected to return to profit by next summer.
As the long-term travel outlook has improved, HSBC aviation analyst Andrew Lobenberg said it was the fastest way to allow the aviation giant to reopen its € 12.3 billion debt and pay dividends.
Bright outlook: Reopening the US for foreign visitors who were vaccinated last week was a major boost for IAG
He said the only alternative to tapping shareholders while the company was trying to raise its credit rating was to gradually pay off debt using ‘cash flows’.
Lಎbenberg said IAG’s new head of finance, Nicholas Cadbury, is likely to make any decision on the rights issue, which begins early next year after joining Whitbread.
Premier Inn owners completed a discounted £ 1 billion claim issue last June to cover the loss of Covidi while closing its hotels and pubs.
Lobenberg previously told The Mail on Sunday in September that any project raising money for the IAG could be tied to positive news that the US could restart.
Earlier this month, IAG secured a £ 1 billion five-year credit line for BA with the support of UK Export Finance.
IAG reported a loss of € 452million (£ 387million) for the three months to September and is forecasting a loss of € 3billion (£ 2.57billion) for the full year. Rival Air France-KLM and Lufthansa have returned to profitability.