British Airways is bracing for increased travel in the wake of global mass vaccinations. The airline's owners announce that they have secured a government-backed loan of 2 billion pounds, equivalent to approximately 22.5 billion kronor, to increase the company's flexibility, reports Business Traveller.

International Airlines Group, which is listed on both the Madrid and London stock exchanges, confirms that the company's subsidiary British Airways has secured a billion-dollar loan to meet increased travel in the coming year. 

The loan, which runs over five years, has been underwritten by a syndicate of banks and is partly guaranteed by the UK Export Credit Fund, UKEF.

International Airlines Group said in a statement that the loan will be used to improve British Airways' liquidity. The capital injection will provide the airline with operational and strategic flexibility to meet the increasing demand for travel that the company expects to see in the wake of the global mass vaccinations that have begun.

In order for the company to meet the loan conditions set, it must, among other things, meet the requirement for dividends to the owner company throughout the loan period.

International Airlines Group, which in addition to British Airways also owns the Spanish airline Iberia, says in a statement that the group of companies continues to have strong liquidity with cash assets and unutilized credit facilities worth 8 billion pounds.

However, the airline group notes that they are continuing to investigate additional loan initiatives to secure liquidity.

Source: di.se