14 September 2020 22:37
International Consolidated Airlines Group (IAG) (LON: IAG) shares plummeted 30% on Monday morning. The British Airways owner saw shares fall, however, it was not due to troubles at the airline group. Instead, is linked to a technical issue as the shares trade ex-rights. Last week, the airline group launched a heavily discounted rights issue to raise €2.74 billion. Investors taking part in the new rights issue have to do so at a price that is 35.9% lower than Thursday's closing price.
Shares are trading at their lowest since the 2009 financial crash. British Airways has been hit hard by the pandemic. The group has said that quarantine rules will mean that this Autumn will see travel rates at a 60% reduced compared to this time in 2019. The airline revealed plans to shed up to 13,000 jobs this year and normal passenger numbers are not expected to return until 2024. Chief executive Luis Gallego said: "Where travel markets have reopened without border restrictions and quarantine requirements, IAG has been encouraged by the level of pent-up demand that exists for air travel." The airline sector is calling on the government to end quarantine rules to encourage flight travel. Heathrow's chief executive, John Holland-Kaye, said: "Britain's economic recovery is falling behind. Heathrow's traffic figures for August demonstrate the extent to which quarantine is strangling the economy, cutting British businesses off from their international markets and blocking international students, tourists and investors from coming here to spend money." IAG shares (LON: IAG) are trading -28.66% at 138,55 (1255GMT).