British Airways is set to delay £450m of pension deficit contributions as the airline giant counts the cost of the loss o business due to the pandemic.
The airline group also International Airlines Group (IAG) said a loan and deal on deferred pension contributions had boosted BA’s liquidity by £2.45bn as the industry burns through cash due to COVID-19 restrictions.
“In addition to these arrangements, IAG continues to explore other debt initiatives to improve further its liquidity,” the company said in a statement. IAG’s shares rose 1% to 167p after the news.
BA usually pays £37.5m a month into the New Airways Pension Scheme (NAPS). It will now delay its contributions until September 2021.
The airline was allowed to temporarily suspend its payments throughout negotiations, meaning it has not been contributing to the scheme since September last year.