In view of tight cashflows, high jet fuel prices and competitive market (vs full service airlines), AAGB will need to return aircrafts to lessors, cut seat capacity by a significant % and suspend certain unprofitable routes. Q3 still looks bleak after a difficult Q2 and Q4 visibility still highly uncertain at this juncture. Negative momentum due to dilutive risks. In addition, consumer confidence and spending power deteriorating.

In view of the significant amount of debt/borrowings and other liabilities (trade and other payables), shareholders need to be prepared for AAGB to issue public offerings of new bonds or rights issues in due course to avoid triggering PN17 after QR3 or QR4 (ie. ~ another 450m in QRs losses).