News: IAG reports huge losses for third quarter

news:-iag-reports-huge-losses-for-third-quarter

International Airlines Group has reported an operating loss of €1.3 million for the third quarter, down from a profit of €1.4 million for the same three months last year.

Passenger capacity operated at the group was down 79 per cent over the period when compared to 2019.

Over the first nine months of the year, IAG has operated just 64 per cent of its planned flights.

Luis Gallego, IAG chief executive, said: “These results demonstrate the negative impact of Covid-19 on our business, but they are exacerbated by constantly changing government restrictions.

“This creates uncertainty for customers and makes it harder to plan our business effectively.

“We are calling on governments to adopt pre-departure testing using reliable and affordable tests with the option of post flight testing to release people from quarantine where they are arriving from countries with high infection rates.

“This would open routes, stimulate economies and get people travelling with confidence.

“When we open routes, there is pent up demand for travel.

“However, we continue to expect that it will take until at least 2023 for passenger demand to recover to 2019 levels.”

In total, IAG reported a total operating loss of €1.9 million when exceptional items, including to fuel hedges and restructuring costs at British Airways and Aer Lingus, are included.

“The group has made significant progress on restructuring and we continue to reduce our cost base and increase the proportion of our variable costs,” said Gallego.

“We have also successfully completed a €2.74 billion capital increase in the quarter.

“It strengthens our financial and strategic position and makes IAG better placed to take advantage of a recovery in air travel demand.”

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