Qatar Airways boosts stake in British Airways, Iberia parent

DUBAI, United Arab Emirates — Qatar Airways says it has boosted its stake in British Airways and Iberia parent IAG, and now owns a little over a fifth of the company.

The Qatari state-backed carrier said on Monday that it raised its stake to 20.01 per cent as of last Thursday, up from 15.67 per cent previously.

It did not say how much it paid, but says IAG's recent market valuation provided "an attractive opportunity". 

IAG shares fell sharply after Britain voted to leave the European Union, and closed last week at 406 pence ($5.36) on the London Stock Exchange, the Associated Press said.

The airline says its interest in IAG is "purely financial" and reflects the strength of commercial and strategic ties between the companies. 

In a statement, Qatar Airways boss Akbar Al Baker said his company had raised its stake because of the current state of the market.

"The recent market valuation of one of the world's leading airline groups has provided what we believe is an attractive opportunity to increase our shareholding in IAG," said Baker.

The move was also announced by Qatar Airways on social media.

"News alert: Qatar Airways now holds a 20% stake in International Airlines Group (IAG)," the Doha-based carrier said on Twitter.

It is the fourth time in just three months Qatar has upped its holding in IAG and comes after shares in the company fell following the Brexit vote by the UK to leave the European Union.

IAG shares have fallen by more than 20 per cent since the vote on June 23.

There is currently a cap on non-EU shareholders of IAG meaning international investors cannot own more than 49 per cent of a European airline.