LONDON - British Airways boosted its financial firepower by agreeing an extra 1 billion pounds ($1.37 billion) in UK Export Finance, adding to the resources available to its parent company IAG.
IAG said on Monday that BA would not necessarily need to use the facility. Most airlines across the world have had to take on huge new loans to help them survive during the pandemic, but travel is now recovering.
"British Airways intends to draw down only if and when required and the facility will not be utilised upon signing," IAG said in a statement.
The new 1 billion pound UK Export Finance guaranteed 5-year credit facility is in addition to the 2 billion pounds BA was granted in December 2020 and drew down in March 2021.
IAG said it has total liquidity of 10.6 billion euros, not including the new facility and it would update investors on Friday when it presents third quarter results.
($1 = 0.7321 pounds)
