RE: RE: For The Long Haul....22 Feb 2021 18:56
Since the start of the pandemic, it has slashed operating costs to reduce cash burn, cancelled dividend payments and scaled back capital expenditure plans. It also conducted a rights issue in October 2020 that raised £2.4bn. This will have boosted a cash position that stood at £4.4bn at the end of the third quarter. When borrowing facilities are included, the company had total liquidity of £8.2bn at the end of October 2020.
The company’s financial prospects may be further improved by its market position. It owns a variety of brands that operate in short-haul and long-haul markets. This may allow it to share costs between its operations to become more efficient compared with sector peers. Its diverse customer base may also equate to greater growth opportunities versus airlines that focus on one group or a narrower price point.