British Airways proprietor IAG slashes flights after €1.3bn droop | Enterprise
International Airlines Group (IAG), the owner of British Airways, has cut its flight schedule for the remainder of the year after posting a loss of EUR 1.3 billion in the third quarter.
In an unscheduled trade update, the group said flights were reduced to just 30% of normal between October and December, due to the reintroduction of travel restrictions by many European governments.
September 1, 2020
“Not only do we have the pandemic under control, with deaths and hospital admissions, but we will continue to address it, with local lockdowns and our superlative test-and-trace system.”
September 9, 2020
“NHS Test and Trace does a heroic job and today most people get a personal test result within 24 hours, and the mean drive is less than 10 miles if someone has to travel to get one … [To Keir Starmer] We do the tough calls – all he does is sit on the sidelines and carp. “
September 9, 2020
[On the ‘moonshot’ proposal for mass, near-instant testing:] “We are confident that this approach will be widespread by spring and when it all comes together it may be possible even for challenging sectors like theater to live a life much closer to normal before Christmas.”
September 16, 2020
“We don’t have enough testing capacity now because in an ideal world I want to test absolutely anyone who wants a test right now… Yes, there is still a long way to go and we will work day and night to make sure it gets there. “
17th September 2020
“Of course testing is a challenge … We sent tests out to all schools to make sure they had tests available. But of course I also see the challenges of getting tests … Tests are available, although getting them is a challenge. “
The loss was significantly worse than the analysts’ forecasts of € 920 million and a profit of € 1.4 billion in the same period last year. Revenue in the third quarter fell 83%, and the group, which also includes Iberia, Vueling and Aer Lingus, warned of capacity cuts that resulted in net cash flows becoming uneven in the fourth quarter.
In July, the IAG raised £ 2.5bn to bolster its balance sheet after posting a record £ 3.8bn loss in the first half of the year when passenger numbers plummeted. Liquidity is still strong, it said on Thursday.
The results were published for the first time under the new CEO Luis Gallego, who succeeded Willie Walsh in early September.
The group had previously announced a reduction in flight capacity in September, but said bookings have since flattened due to measures taken by European governments in response to a second wave of Covid-19 cases.
Describing the current environment as “very unsafe”, the IAG said passengers would not book flights as expected due to government restrictions, including local lockdowns and the expansion of quarantine requirements for travelers from a growing list of countries.
The group cut thousands of jobs at their airlines, including Iberia and BA, where they tried to lay off 12,000 employees when the pandemic broke out in the spring.
The IAG complained that governments were not quick to take initiatives to give people the confidence to book flights or travel, such as pre-departure coronavirus testing or arranging for “air corridors” between countries that do Allow passengers to travel without quarantine.
Airport owners and UK airlines, including BA, have been calling on the government for several months to allow the urgent introduction of coronavirus testing on passengers arriving at UK airports, warning that the non-authorization will weigh on the aviation industry and create thousands of jobs Risk.