Aer Lingus Owner IAG Drew Down On Remainder Of €150m Ireland Strategic Investment Fund Debt Facility During First Quarter Of 2021; Records Operating Loss Before Exceptional Items For First Quarter Of 2021
Aer Lingus owner International Airlines Group (IAG) drew down the remainder of a €150 million debt facility provided by the Ireland Strategic Investment Fund (ISIF) during the first quarter of this year.
As reported by The Irish Times, IAG drew down an initial €75 million during the final quarter of 2020.
The ISIF has agreed a three-year loan for Aer Lingus.
IAG's latest figures show that it also drew down £2 billion, or €2.3 billion, in borrowing for British Airways, which it also owns, during the period.
Q2 Capacity Forecast
IAG has forecast an increase in capacity from 19.6% during the first quarter of 2021 to 25% during the second quarter of this year.
IAG's 19.6% capacity during the first quarter of 2021 resulted in the group experiencing a €1.14 billion operating loss before exceptional items during the three month period, which was slightly better than the €1.17 billion loss that was forecast by analysts.
IAG's revenues decreased by 78.9% to €968 million during the first quarter of 2021, with passenger revenue decreasing by 88.4% to €459 million.
IAG Chief Executive Statement
The Irish Times quotes IAG chief executive Luis Gallego as saying, "We're taking all necessary actions to ensure the financial health of our business for the long-term, including last year’s successful €2.7 billion capital increase, and remain focused on reducing our cost base and increasing efficiencies."
No Profit Guidance For 2021
IAG did not provide profit guidance for 2021 due to uncertainty about the ongoing impact of the COVID-19 pandemic, and the group predicted that passenger demand will not return to 2019 levels until 2023 at the earliest.
Additionally IAG closed a dual-tranche senior unsecured bond issuance during the first quarter of 2021, raising €1.2 billion, €500 million of which will mature in 2025 and €700 million of which will mature in 2029; the group signed a secured revolving credit facility for $1.75 billion with a syndicate of banks, which is available to Aer Lingus, British Airways and Iberia, which IAG also owns, each of which has a separate borrower limited within the overall facility; the group's weekly cash burn reduced to €175 million, which was better than the €185 million figure that it previously guided; and IAG said that it had strong liquidity of €10.5 billion at the end of three month period.
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