British Airways Owner IAG Cancels Dividend Payments Amid COVID-19 Epidemic - Statement

British Airways Owner IAG Cancels Dividend Payments Amid COVID-19 Epidemic - Statement

The International Airlines Group (IAG), which owns the UK flag carrier airline British Airways announced on Thursday that it would not pay final dividends for 2019, but instead transfer the funds to a voluntary reserve to help contain the spread of COVID-19

LONDON (Pakistan Point News / Sputnik - 02nd April, 2020) The International Airlines Group (IAG), which owns the UK flag carrier airline British Airways announced on Thursday that it would not pay final dividends for 2019, but instead transfer the funds to a voluntary reserve to help contain the spread of COVID-19.

"As a result of the impact of the situation created by COVID-19, the Board of Directors of International Consolidated Airlines Group, S.A. (IAG) has resolved to withdraw the proposal to the next Annual Shareholders' Meeting to pay a final dividend of 0.17 Euros per share and, instead, to propose the allocation of all the profit for the fiscal year 2019 (except the amount already paid as an interim dividend) to the voluntary reserve," the company's statement read.

The IAG added that the board had decided to postpone the annual shareholders' meeting from June until the end of September.

Earlier in the day, British Airways said it would suspend up to 36,000 staff due to the coronavirus pandemic. All airline employees temporarily left without work can rely on compensation in the amount of 80 percent of their salary under the state support program in light of the epidemic.

The IAG announced in February that it expected a negative impact on the company's financial performance due to the coronavirus. However, the holding has significant liquidity to face the crisis.

The United Kingdom has so far registered 33,718 COVID-19 cases, 2,921 of which have been fatal, according to the government website.