International Airlines Group (IAG) has warned recovery will be slow as it reported a pre-tax of loss of 4.2 billion euro (£3.8 billion) in the first six months of the year.
The figure compares to a €1 billion profit in the same period a year ago.
Passenger numbers were down 98% and the airline has warned it will take until 2023 for numbers to return to pre-Covid levels.
Revenue was €5.3 billion (£4.8 billion), about 56% lower than the same period last year.
IAG plans to raise €2.75 billion, and says it has support for this from its main shareholder, Qatar Airways.
Willie Walsh, IAG’s outgoing Chief Executive, said: "All IAG airlines made substantial losses. As a result of government travel restrictions, quarter two passenger traffic fell by 98.4% on a capacity reduction in the quarter of 95.3%.
"We continue to expect that it will take until at least 2023 for passenger demand to recover to 2019 levels."
"Our industry is facing an unprecedented crisis and the outlook remains uncertain. However, we strongly believe that now is the time to look to the future and strengthen IAG’s financial and strategic position.
"The industry will recover from this crisis, though we do not expect this to be before 2023, and there will be opportunities for IAG to capitalise on its strength and leadership positions.
