Qatar Airways increases its stake in British Airways owner IAG

In the wake of falling rates due to Brexit, Qatar Airways has made its third stake purchase abroad in the last month

2 August 2016, 9:08am

1 min read

Qatar Airways bumps up its stake in IAG from 15.7% to 20%

Qatar Airways raised its stake in British Airways owner IAG SA to 20%, taking advantage of a drop in the company’s stock price since the Brexit vote last month.

Qatar Airways, which increased the holding from 15.7 % as of 28 July, doesn’t plan to add to the stake, the company said in a statement on Monday.

This was Qatar Airways’ third announcement of a stake purchase abroad in the past month as it pursues a global expansion programme. It had made agreements to buy 10% of Latam Airlines, South America’s biggest carrier, and 49% Meridiana Fly, Italy’s second-largest airline.

“The recent market valuation of one of the world’s leading airline groups has provided what we believe is an attractive opportunity to increase our shareholding in IAG,” Akbar Al Baker, Qatar Airways chief executive said in the statement.

Shares of IAG, which also owns Spanish airline Iberia and Irish carrier Aer Lingus, have dropped 23% since the UK voted for Brexit.

The company cut its earnings target for 2016 last week, citing the vote approving a pullout from the bloc.