IAG - Rights issue planned; record loss in Q2 results

Davy Research
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IAG’s leaked plan for a £2.75bn rights issue has been announced subject to AGM approval on September 8th. The proposed capital increase will strengthen IAG's balance sheet by reducing financial leverage and increasing its overall liquidity position. The Air Europa transaction is still under active discussion. Loss in the quarter was a little less than expectations with capacity planned to be -46% in Q4 versus last year.