IAG

€10bn in liquidity – c.40% of FY2019 revenues

  • Sectors : Airlines
  • Companies : IAG

Ratings and price correct at time of issue.

  • IAG

    Closing Price: 196.7p

  • RATING 31/08/18

  • PREVIOUS RATING 22/08/17

    NEUTRAL

DAVY VIEW

IAG pre-released Q1 numbers on April 28th with very substantial losses and warned that Q2 will be “significantly worse”. Liquidity is now €10bn, c.40% of last year’s revenue. For April and May, the normal run-rate cash operating costs have been reduced from €440m per week to €200m per week. IAG's CEO Willie Walsh is staying with the group until September 24th 2020. IAG is one of the few airlines globally that should have enough liquidity to see out the crisis. Capacity is assumed to be down 50% in 2020, including 90% in Q2, 50% in Q3 and 30% in Q4.

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May 7 2020, 07:45 IST/BST

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