Qatar Airways today confirmed that it has raised its shareholding in British Airways owner International Airlines group to 20%.
The Gulf carrier announced in July that it was considering raising its 15.67% stake in IAG within allowable limits.
Non-EU shareholders of IAG including Qatar Airways are subject to an overall cap on ownership as a result of a requirement for them to be majority owned by EU shareholders.
Qatar Airways announced that it now holds 20.01% of IAG.
“While Qatar Airways’ interest in IAG is purely financial, the increased shareholding reflects the strength of commercial and strategic ties between the companies and evidences the continued support for the ongoing strategy of IAG,” the airline said.
Qatar Airways chief executive, Akbar Al Baker, said: “The recent market valuation of one of the world’s leading airline groups has provided what we believe is an attractive opportunity to increase our shareholding in IAG.
“We continue to be highly supportive of IAG’s strategy and management team and we do not intend to increase our percentage shareholding further unless there are material changes to the current situation.”
The disclosure came after IAG warned that currency movements cost it €148 million in the last quarter and it expected €80 million in disruption costs.
IAG, which also owns Aer Lingus, Iberia and Vueling, revealed that capacity growth planned for the second half of the year has been reduced while plans for raising capacity in 2017 are under review.
In relation to this story, the business:am email on August 1 read ‘Investment comes after group lost €148 million last quarter’ we wish to clarify this should in fact have read ‘Investment comes after group lost €148 million to currency movements last quarter’.
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