British Airways-owner IAG reported a 1.3 billion euro 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, Trend reports with reference to Reuters.
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 loss was significantly worse than the 920 million euro analysts’ consensus and behind the 1.4 billion euros of profit it made in the same period last year.
The results were the first to be published under new CEO 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% 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 euros from shareholders which it received in early October, boosting its liquidity to 9.3 billion euros.