The impact of the coronavirus crisis on British Airways parent group IAG has been laid bare after the group announced a $2.6 billion loss for the second quarter of 2020, compared to a $1.3 billion profit in the first half of last year.
IAG also announced it is seeking to raise $3.2 billion of capital, a move which has been backed by its largest shareholder, Qatar Airways.
Passenger numbers for the group fell by 98% in the second quarter of this year and IAG has already announced 12,000 job cuts.
Willie Walsh, IAG’s soon-to-depart chief executive, said in a statement that he expects passenger demand to remain below 2019 levels until “at least 2023”.
“All IAG airlines made substantial losses,” Walsh said. “We have seen evidence that demand recovers when government restrictions are lifted. Our airlines have put in place measures to provide additional reassurance to their customers and employees on board and at the airport.”
He confirmed: “Subject to shareholder approval at our AGM on September 8, IAG will undertake a capital increase of up to €2.75 billion which will enhance the group’s resilience, balance sheet and liquidity position.
“We’re delighted that our largest shareholder, Qatar Airways, has already committed to support the proposed capital raising.”