Aer Lingus and British Airways owner IAG is not planning to raise billions of euros from shareholders to get the company through the extended Covid-19 crisis, its chief executive Luis Gallego told The Sunday Times.
"We do not see the necessity to do a rights issue and are not considering it," Gallego told the newspaper adding that the company was talking through "different options" with banks.
The comments come after media speculation about the company's plans to shore up its finances.
In May, IAG announced plans to raise €825m from a convertible bond to bolster its balance sheet.
Last year, the group launched a €2.75 billion capital raising.
Gallego noted that the group had high debts but also had strong liquidity of €10.2 billion, the newspaper reported.
"We have revolving credit facilities, we are analysing other ways of financing the group so we have alternatives before we [consider] another rights issue," he told the newspaper adding that repaying debts will be group's priority.
Earlier this month, British airline EasyJet opted to raise $1.7 billion from shareholders to recover from the pandemic and declined a takeover approach from Wizz Air.
Asked if he had discussed a merger with executives at EasyJet, Gallego said: "We talk to all airlines that can be interesting to us."