International Airlines Group (IAG), which owns British airways, the U.K.’s second largest airline by passenger numbers, fell far short of analysts’ expectations on Thursday as it recorded a loss of $1.5 billion (1.3 billion euros) in the third quarter and announced further cuts to its schedule amid a severe drop in demand for air travel.
Losses at IAG flew below forecasts of $1.1 billion (920 million euros) to report a 1.3 billion loss.
Revenue was down 83%, from $8.6 billion (7.3 billion euros) this time last year, to $1.4 billion (1.2 billion euros) in the three months to the end of September.
IAG blamed a rise in local lockdowns for impacting bookings as several of its key markets face a surge in new infections, while it added that governments had not adopted air travel corridors or new measures to replace quarantine periods as quickly as it had hoped.
The group, which earlier this year was forced to cut 94% of its flights at the height of the first wave of the pandemic, now says it will operate up to 30% of its 2019 capacity in the fourth quarter, lower than the 40% that they had hoped.
But the group said liquidity remains strong, adding it had raised 2.74 billion euros in early October, helping it to maintain a strong pot of cash likely totalling 9.3 billion euros ($11 billion).
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IAG shares were down almost 2% on Thursday morning.
IAG previously said it does not expect passenger demand to return to pre-pandemic levels until 2023. Like many global air travel firms, the group was severely hit by coronavirus restrictions introduced earlier this year and forced to dramatically slash the number of flights it operated during the first wave of the virus.
As of May, the firm, which also owns Iberia, Spain’s flagship airline, budget airline Vueling and Ireland’s flagship airline Aer Lingus, had received some $1.45 billion in government support from the U.K. and Spain. Industry veteran Willie Walsh, who stepped down as IAG CEO in September with ex-Iberia CEO Luis Gallego taking over, recently warned that the coming months would be “very tough” for the industry and that it would “never go back to the way it was”, but added that he foresees airlines becoming more efficient.
British Airways announced over the summer that it would press ahead to cut almost a third of its workforce—or 12,000 jobs—to offset the pandemic-induced downturn.
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British Airways owner IAG cuts flight numbers again IAG, the owner of British Airways, has said it will operate fewer planes than planned for the rest of the year as the pandemic continues to hit demand. The airline group said it would fly no more than 30% of its usual flights compared to last year. The news came as the firm – which also owns the Iberia and Aer Lingus airlines – reported a €1.3bn (£1.17bn) loss for the period from July to September.
In the same period last year, the group reported a €1.4bn profit. IAG said revenue in the quarter plunged 83% to €1.2bn, compared to €7.3bn last year. “Recent overall bookings have not developed as previously expected due to additional measures implemented by many European governments in response to a second wave of Covid-19 infections,” IAG said. ►► Like and share more news! ►► Subscribe to 00Fast News! ►► See you in the next news! Goodbye! https://00fastnews.blogspot.comhttps://www.youtube.com/channel/UClk2… Created By 00Fast News #news#00fastnews#breakingnews#latestnews#newsupdate