British Airways has agreed a £1 billion ($1.36 billion) loan to bolster its balance sheet, the airline announced on November 1, 2021.
The loan, for a term of five years, is provided by UK Export Finance, the UK’s export credit agency, and a syndicate of banks, parent IAG said in a press release.
“British Airways intends to draw down only if and when required and the facility will not be utilised upon signing,” the carrier commented.
The new funding comes on top of a £2 billion ($2.7 billion) UKEF guaranteed facility that BA announced in December 2020. The British flag carrier drew down that loan in March 2021.
IAG, which also owns Iberia and Aer Lingus, highlighted that with €10.6 billion ($12.3 billion) in total liquidity as per September 30, 2021, its liquidity was “strong”.
The group will report third-quarter financial results on November 5, 2021. Other airlines in Europe have reported third-quarter results boosted by easing summer travel restrictions.
In light of borders opening up, notably to long-haul destinations in the United States, British Airways has started preparing to bring back the A380 on certain routes. It has also announced plans to recruit cabin crew for summer 2022.