IAG shareholders have approved the group’s plan for a $3.25 billion rights issue at a virtual meeting which also saw chief executive Wille Walsh over control of the firm to Iberia's Luis Gallego.
The rights issue was approved by 99% and included an “irrevocable commitment” from Qatar Airways, whose 25% holding makes it the single largest investor in the airline group.
"It is the worst crisis we have ever faced, far worse than both 9/11 and the financial crash in 2008," Willie Walsh said.
"We are having to re-calibrate everything we do as we anticipate that it will take until at least 2023 or 2024 for passenger demand to recover to 2019 levels," he added.
Just ahead of the vote, Moody's Investors downgraded IAG to Ba2 from Ba1, and also kept its outlook negative. At the same time, Moody's also downgraded the rating on IAG subsidiary, British Airways to Ba2 from Ba1.
The ratings agency said its downgrade reflected the slow pace of passenger demand recovery in Europe since the quarantine measures and travel restrictions imposed in the first quarter of 2020.
"Moody's anticipates that pro forma for the rights issue and American Express proceeds, IAG's liquidity will support the company to operate for around 500 days if demand does not improve from estimated levels in the third quarter of 2020. There is a high degree of uncertainty in this estimate, however Moody's considers that the company's liquidity is weaker compared than similarly Ba-rated airlines.
Nevertheless, the company has further levers to generate additional liquidity including through its remaining unencumbered aircraft fleet," the agency said.