British holding company International Airlines Group, which owns British Airways, said American Express is willing to pay £ 750m ($ 955m) to renew the partnership, which will provide the cash-strapped airline with long-awaited funding.
The pressure on airlines has not eased and they are still suffering losses, despite the relative stabilization in aviation after the release of quarantines and the resumption of flights, albeit in limited numbers. In some destinations, limits are still in effect, and customers are experiencing ongoing anxiety.
The pandemic hit the IAG, leading to media speculation that it may need new capital. At the end of April, the company announced it had 10 billion euros ($ 11.6 billion) in liquidity, but it is losing 200 million euros each week.
Even if the £ 750 million partnership deal doesn't save the company, it will give it a break.
The multi-year agreement with American Express payment company implies that the latter will pay the IAG for the purchase of Avios, which members of the bonus programs can use to buy tickets.
Meanwhile, IAG shares were down 1.7%, or 205p, and lost 67% of their value in a year.
The IAG, which also owns Iberia, Vueling and Aer Lingus, is due to release its second quarter results on 31 July.
The pressure on airlines has not eased and they are still suffering losses, despite the relative stabilization in aviation after the release of quarantines and the resumption of flights, albeit in limited numbers. In some destinations, limits are still in effect, and customers are experiencing ongoing anxiety.
The pandemic hit the IAG, leading to media speculation that it may need new capital. At the end of April, the company announced it had 10 billion euros ($ 11.6 billion) in liquidity, but it is losing 200 million euros each week.
Even if the £ 750 million partnership deal doesn't save the company, it will give it a break.
The multi-year agreement with American Express payment company implies that the latter will pay the IAG for the purchase of Avios, which members of the bonus programs can use to buy tickets.
Meanwhile, IAG shares were down 1.7%, or 205p, and lost 67% of their value in a year.
The IAG, which also owns Iberia, Vueling and Aer Lingus, is due to release its second quarter results on 31 July.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.