Selangor Journal
People board a British Airways airplane, as Croatia struggles with more cases of coronavirus disease (Covid-19), at the airport in Split, Croatia, on August 20, 2020. — Picture by REUTERS

British Airways-owner IAG reports €1.3 billion (RM6.39 billion) loss in third quarter

LONDON, Oct 22 — British Airways-owner IAG reported a €1.3 billion (RM6.39 billion) loss in the third quarter as coronavirus restrictions continue to depress travel, forcing it to further downgrade its capacity outlook for the rest of the year.

The airline group, which also operates Iberia, Vueling and Aer Lingus, announced its preliminary results for the three months to the end of September one week earlier than expected.

The €1.3 billion (RM6.39 billion) loss was significantly worse than the €920 million (RM4.5 billion) analysts’ consensus and behind the €1.4 billion (RM6.89 billion) of profit it made in the same period last year.

The results were the first to be published under new chief executive officer Luis Gallego who took over from Willie Walsh in early September.

IAG said on Thursday that for the fourth quarter it would fly no more than 30 per cent of the capacity it flew in the same period last year, lower than previous guidance, which had already been cut.

With less flying, the group warned it no longer expected to reach breakeven in terms of net cash flows from operating activities during the fourth quarter, but said that liquidity was strong.

The company raised €2.74 billion (RM13.48 billion) from shareholders which it received in early October, boosting its liquidity to €9.3 billion (RM45.74 billion).

— Reuters

 

 

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