British Airways has boosted its liquidity by £2.45 billion as it tries to weather the coronavirus pandemic.
Owner International Airlines Group (IAG) said the airline has reached final agreement on a £2 billion loan underwritten by a syndicate of banks and partially guaranteed by the Government’s UK Export Finance (UKEF).
The carrier expects to draw down from the five-year loan before the end of next month.
British Airways has also reached agreement with the trustee of a pension scheme to defer £450 million of pension deficit contributions due between October 2020 and September 2021.
It was due to fill the hole in its pension pot by March 2023, but the deferred contributions plus interest will be made as monthly repayments after this date.
British Airways owner IAG has struck a deal with one of its pension funds to defer £450million of pension deficit contributions to save cash until the airline can start flying again at full capacity.
The agreement with the New Airways Pension Scheme means BA will defer monthly contributions of £37.5million due between October 2020 and September 2021 until March 2023.
Under the deal, British Airways will pay interest on the deferred cash and put property assets as a security, which will remain in place until the airline has repaid the pension contributions.
BA will also temporarily stop to pay dividends to IAG until the end of 2023.