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British Airways Owner IAG Taps U.K. Funds to Survive Slump

  • CEO Walsh says rebound from virus will take several years
  • Flights set to return from July but at a much reduced capacity
Airlines May Take $253 Billion Hit From Coronavirus Pandemic
Photographer: Simon Dawson/Bloomberg
Updated on

British Airways parent IAG SA tapped U.K. government-backed loans to boost liquidity, in a sign of the damage being wrought by the Covid-19 pandemic on even the industry’s strongest players.

IAG accessed 300 million pounds ($371 million) from the Coronavirus Corporate Finance Facility in the second week of April, it said Thursday, taking state-supported borrowing to $1.45 billion including Spanish funds. The group, which initially signaled it wasn’t seeking aid, said it’s essentially grounded until July.