British Airways is not intending to look to a rights issue to raise its liquidity, although it is exploring options in other markets.
The carrier's chairman, Martin Broughton, told shareholders at BA's annual general meeting today that current liquidity was above the "desired minimum" of 15% of revenues but that a prolonged economic downturn "would be stretching".
"We do not believe that the timing is right to approach the financial markets for a rights issue as there are a number of key issues that need to be resolved over the next 12 months," says Broughton.
But he says the carrier has "other options" to raise funding and believes it is "in the interests of our shareholders" to look at mechanisms to increase liquidity.
"We are in discussions with our institutional investors exploring opportunities in the convertible market, which we believe is the best way of increasing our cash reserves," he says.