International Airlines Group's cash position fell by €826 million to €2.91 billion ($3.78 billion) in 2012 due to "significant pre-delivery payments on aircraft" and a "weaker operating performance".
In an annual report, IAG indicates progress payments for the year "in excess of €400 million" for Boeing 777-300, Boeing 787, Airbus A320 and Airbus A380 aircraft. IAG says it also acquired three new aircraft in 2012 and made payments for engineering overhauls and spares.
Cash held by British Airways totalled €1.96 billion, while Iberia held €808 million and IAG held €20 million in the period to 31 December. Veloz held another €117 million in cash as part of IAG's proposed purchase of 54.15% of Vueling, says IAG.
Net debt increased by €741 million in the year to €1.89 billion due to a "reduction in cash". Adjusted gearing has therefore increased to 51%, from 44% in the prior year, says IAG.
Contingent liquidity improved in 2012 due to an €805 million secured revolving credit facility for British Airways.
IAG recorded an operating loss for the period to 31 December of €23 million before exceptional items, compared with an operating profit of €485 million in 2011.