BA-owner IAG posts big loss, cuts flights again
The outlook gets ever cloudier for British Airways-owner IAG.
On Thursday (October 22) the airline group said its third-quarter loss hit 1.3 billion euros - or over 1.5 billion dollars.
That was far above analyst forecasts, and comes as passenger numbers plunged.
The company says it struggled to even half-fill the few planes that are flying.
And the coming months don’t look better for the group, which also owns Iberia, Aer Lingus and other carriers.
Over the fourth quarter IAG now says it will fly just 30% of its capacity, down from earlier guidance of 40%.
As a result it no longer expects to break even over the period.
Though it said it had plenty of liquidity on hand, after raising over 3 billion dollars from shareholders with a rights issue.
One glimmer of hope for the airline was this week’s introduction of rapid virus testing at its main hub, London’s Heathrow Airport.
Passengers to some destinations can now get a quick check before they fly.
BA and other airlines hope such measures could restore confidence in air travel.
But right now that seems a distant hope.
IAG shares dropped more than 3% Thursday before recovering some ground.
So far this year the stock has lost almost 80% of its value.
