British Airways owner IAG crashes into e1.3 billion loss over the summer quarter as Covid-19 restrictions and quarantines hammer demand
British Airways owner IAG's moves to slash flights amid extensions of quarantines and travel restrictions sent it tumbling into a e1.3 billion loss in the past three months but the group said it had enough cash to survive.
Across its airlines, which include Iberia and Aer Lingus, it now plans for the current quarter of the year to be operating only 30% of the flights it ran a year ago.
It cited the failures of governments to adopt airport testing before departures and air corridors, such as those the industry had hoped for between Heathrow and New York.
That cut will mean IAG no longer reaches breakeven on its cashflows during the fourth quarter.
However, it stressed its liquidity remained strong, at e6.6 billion, following major capital raises and job cuts.
In the third quarter of its financial year, revenue declined 83% to e1.2 billion, leading to a e1.3 billion loss against e1.4 billion profit a year ago.
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