(Reuters) – British Airways owner IAG said on Tuesday it had secured a $1.76 billion credit facility from a group of banks that would be available to its coronavirus-hit airlines Aer Lingus, British Airways and Iberia.
The travel sector was dealt a fresh blow this week when Britons were warned not to book summer holidays abroad, deepening fears of a second straight lost summer as Europe’s slow and chaotic vaccine rollout undermines expectations of a rebound.
Shares of IAG were down 4.6% by 1618 GMT.
The company said in a statement on Tuesday that the three airlines would have a separate borrowing limit within the overall three-year facility.
“Amounts drawn would be secured against eligible unencumbered aircraft assets and take-off and landing rights at both London Heathrow and London Gatwick airports,” it said.
IAG also said that British Airways had simultaneously cancelled its U.S. dollar facility, which had $786 million available at December-end and was due to expire on June 23.
IAG’s total liquidity is estimated to be 10.3 billion euros ($12.22 billion) as of March 31, it said.
($1 = 0.8427 euros)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Aditya Soni)