Read between the lines11 Sep 2021 10:14
Last statement;
"Total liquidity at the end of the six months remained strong at €10.2 billion, including cash, cash equivalents and current interest-bearing deposits of €7.7 billion and committed and undrawn general and aircraft facilities of €2.5 billion. Including the British Airways sustainability-linked EETC financing secured in July increases pro forma liquidity to €10.8 billion.
[this is the source of the 10bil oft quoted, but look again and you see that is not 10bil sitting in the bank, it is a composed of many elements. Financial restructuring can alter that, forward planning can also alter that.]
[HOWEVER......... The next bit of the statement is the caveat, if there is to be a RI, then this bit will be the part quoted and drawn on to qualify what ever change in circumstances or financing has led to an RI. Now an RI may not be needed at all, we may just have a restatement of the above part of the RNS. All well and good. But!]
"The Group expects that it will take until at least 2023 for passenger demand to reach the levels of 2019. As a result the Group is actively involved in restructuring its cost base to adjust to significantly lower levels of demand, including actions to reduce fixed costs and to increase the variable proportion of the cost structure. [restructuring is underway]
Based on the extensive modelling the Group has undertaken in light of the COVID-19 pandemic, including considering plausible but severe downside scenarios, the Directors have a reasonable expectation that the Group has sufficient liquidity for the going concern assessment period to December 31, 2022 and accordingly the Directors have adopted the going concern basis in preparing the consolidated results for the six months to June 30, 2021. [Yipeeee]
However [oh oh! the caveat], there are a number of significant factors related to COVID-19 that are outside of the control of the Group, related to the status and impact of the pandemic worldwide. These include the emergence of new variants of the virus and potential resurgence of existing strains of the virus; the availability of vaccines worldwide, together with the speed at which they are deployed; the efficacy of those vaccines; and the restrictions imposed by national governments in respect of the freedom of movement and travel. Due to the uncertainty that these factors create, the Directors are not able to provide certainty that there could not be more severe downside scenarios than those that have been considered in the modelling, including the sensitivities the Group has considered in relation to factors such as the impact on yield, capacity operated, cost mitigations achieved and the availability of aircraft financing to offset capital expenditure. In the event that such a scenario were to occur, the Group would need to implement additional mitigation measures and would likely need to secure additional funding [!!!!!!!!!!!] over and above that which is contractually committed at July
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