British Airways’ parent company IAG slashes flights by 70% compared to last year after losing £1.2BILLION in three months
- The group expects its flight capacity to be no more than 30% until December
- IAG said bookings lower than expected due to restrictions from second wave
- Measures include increase in local lockdowns and the extension of quarantine
British Airways’ parent company IAG has slashed flights by 70 per cent compared to last year after losing £1.2billion in three months.
The group expects its flight capacity from October to December to be no more than 30 per cent, which is down from previous guidance, of what it was over the same period in 2019.
IAG said the reduction is due to recent bookings being lower than expected due to ‘additional measures implemented by many European governments in response to a second wave of Covid-19 infections’.
British Airways’ parent company IAG has announced its flight capacity between October and December will be ‘no more than 30 per cent’ of what it was during the same period in 2019
These include an increase in local lockdowns and the extension of quarantine requirements for travellers visiting a rising number of countries.
Meanwhile, initiatives to reduce quarantine periods and boost customer confidence to book and travel – such as pre-departure testing and air corridors – have ‘not been adopted by governments as quickly as anticipated’, IAG said.
As a result, the group ‘no longer expects to reach breakeven in terms of net cash flows from operating activities’ between October and December.
Announcing its preliminary financial results for July-September, total revenue declined by 83 per cent year on year to £1.1billion (€1.2billion).
IAG said the reduction is due to recent bookings being lower than expected due to second wave restrictions (pictured: file photo of a 747-400 jumbo jet in Cirencester, UK)
The loss before exceptional items of £1.2billion (€1.3billion) between July and September is compared with a £1.3billion (€1.4billion) profit during the same period last year.
Flight capacity was down 78.6 per cent over the quarter, with passenger demand decreasing by 88.0 per cent.
The average number of seats filled on flights was 48.9 per cent, down 38.8 percentage points.
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