Aer Lingus-owner IAG 'set to raise €2.5bn in shares sale' to survive Covid-19 slump                

As passenger numbers fall, Aer Lingus and British Airways owner IAG attempt to raise capital by offering discounted shares to existing shareholders 

Decimated passenger numbers mean it will take years before Aer Lingus owner IAG recover. Photograph: Leon Farrell / RollingNews.ie

Aer Lingus and British Airways owner IAG is set to issue shares at the end of the summer in a bid to raise up to €2.5bn to keep the business afloat and avoid a government bailout, according to sources. 

IAG is most likely to raise capital with a rights issue, where new shares are offered to existing shareholders at a discount, by the beginning of September. Other options, such as an equity placing and a concurrent issuance of convertible bonds are also being considered, the sources said.