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IAG pays off €3,271 M of loans signed between 2020 and 2021 due to mature between 2024 and 2026

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IAG

Posted By: The Corner 23rd April 2024

Link Securities | IAG (IAG) has repaid €3,271 million of debt loans that its various airlines signed between 2020 and 2021, which matured between 2024 and 2026, according to Expansión newspaper. The average cost of these loans stood at 9%, compared to the 4.5% – 5.25% that is currently the price of money in Europe and the UK. With the flow of income normalised, thanks to the increase in demand, which continues to grow, the group allocated part of its liquidity to amortise the most onerous loans, and closed the year with liquidity of €11,124 million, compared to €13,999 million at the end of 2022. As a result, IAG’s net financial debt fell by 11% to €9,245 million, or 1.7x (times) operating cash flow (EBITDA), compared to 3.1x in 2022.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.