IAG’s revolving credit facility is available for three years but can be extended for two one-year extension periods. 

The facility is available to Aer Lingus, British Airways and Iberia, each of which has a separate borrower limit within the overall facility. 

In a Stock Exchange note, IAG chief financial officer Stephen Gunning said the loan would be secured against aircraft assets and take-off and landing rights at Heathrow and Gatwick. 

As a result of the new financial deal, BA has cancelled its US dollar facility due to expire on 23 June, which had $786 million undrawn. Another €400 million of facilities are due to expire undrawn by the end of March. 

The note said: “IAG continues to have strong liquidity with an estimated total as of 31 March of €10.3 billion, comprised of €7.8 billion cash, cash equivalents and interest-bearing deposits, €1.7 billion undrawn general facilities, including today’s announced facility undrawn, and €0.8 billion committed aircraft financing facilities.”