(Reuters) – British airline Virgin Atlantic, which has been hammered by the COVID-19 pandemic like a lot of the sector, is about to boost 160 million kilos ($222.75 million) in new financing, a spokeswoman for Richard Branson’s airline stated in an emailed assertion.
“We proceed to bolster our stability sheet in anticipation of the lifting of worldwide journey restrictions through the second quarter of 2021”, the spokeswoman stated.
“This newest £160 million financing supplies additional resilience in opposition to a slower income restoration in 2021”, she stated.
The newest financing follows the airline’s completion in January of the sale and leaseback of two Boeing 787s as a part of a plan to strengthen its stability sheet.
The take care of Griffin World Asset Administration to boost simply over $230 million from the 2 planes was meant to allow Virgin Atlantic to repay a mortgage taken on as a part of its rescue deal final yr.
Within the newest increase, Branson’s Virgin Group is about to supply about 100 million kilos and the remaining 60 million kilos would come with deferrals, in response to Sky Information, which first reported the event.
In November, the corporate stated that its 1.2 billion pound rescue deal secured two months prior meant that the airline can survive even when the journey scenario have been to worsen.
Virgin reduce prices by 335 million kilos final yr, CEO Shai Weiss instructed an airline business occasion in November. It had additionally introduced 4,650 job losses through the pandemic, halving its workforce, and shrank its fleet.
Reporting by Kanishka Singh in Bengaluru; Modifying by Bernadette Baum