Qatar Airways Boosts IAG Stake To 20 Pct

Qatar Airways has taken advantage of the recent stock market slump to increase its stake in British Airways parent IAG to 20 percent.

Qatar Air’s chief executive Akbar Al Baker said the recent market valuation of International Airlines Group had provided “an attractive opportunity” to lift its shareholding.

The Gulf carrier previously owned 15.67 percent of IAG and had said it would consider increasing its stake further within allowable limits.

Al Baker said that Qatar Airways does not intend to increase its shareholding from the current 20 percent level “unless there are material changes to the current situation.”

European Union rules prohibit foreign control of EU airlines and cap shareholding at 49.9 percent.

In a statement, Qatar Airways said its interest in IAG is purely financial… and “evidences the continued support for the ongoing strategy of IAG.”

On Friday IAG announced it had trimmed growth plans for 2016 and given a cautious outlook for annual earnings due to weaker trading and the slump in sterling after Britain's vote to leave the European Union.