BA-parent IAG warns of $3.5 bln loss for 2021

IAG is heading for a $3.5 billion loss this year.

That's according to the airline group Friday (November 5).

The British Airways owner blamed health crisis restrictions which lasted through most of 2021.

During the July to September quarter IAG posted an operating loss of $560 million.

That was a particularly disappointing number as summer is normally the most profitable time for carriers.

The group's yearly loss puts IAG behind European rivals.

Germany's Lufthansa recently posted a small quarterly profit, and Air France-KLM has said it expects slightly positive earnings for the year.

IAG has suffered from its greater exposure to Britain.

The country's complicated and expensive virus testing rules deterred travel over the summer.

But the British Airways owner said the company could potentially return to profit next year through lucrative transatlantic flights.

On Monday, the United States will fully reopen to UK and other foreign travel.

IAG shares fell over 2.5% in early trades Friday following the firm's latest outlook.

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