International Airlines Group, parent of British Airways, Iberia,
Aer Lingus and Vueling, has posted an operating loss of €1.92 billion for the
third quarter, including exceptional items relating to fuel hedges plus
restructuring costs.
Passenger revenue for the nine months to the end of September
was €4.83 billion, 71.4 per cent down on the same period in 2019.
Luis Gallego, IAG’s chief executive officer, said: “These
results demonstrate the negative impact of Covid-19 on our business but they’re
exacerbated by constantly changing government restrictions. This creates uncertainty
for customers and makes it harder to plan our business effectively.
“We are calling on governments to adopt pre-departure
testing using reliable and affordable tests with the option of post-flight
testing to release people from quarantine where they are arriving from
countries with high infection rates. This would open routes, stimulate
economies and get people travelling with confidence. When we open routes, there
is pent up demand for travel.”
He added: “We continue to expect that it will take until at
least 2023 for passenger demand to recover to 2019 levels. The group has made
significant progress on restructuring and we continue to reduce our cost base
and increase the proportion of our variable costs.
“We have also successfully
completed a €2.74 billion capital increase in the quarter. It strengthens our
financial and strategic position and makes IAG better placed to take advantage
of a recovery in air travel demand.”
The group said it had reduced employee numbers at British
Airways and Aer Lingus by around 10,000 for which it recognised a €275 million
exceptional cost.
British Airways said this week
it would operate 52 long-haul routes alongside its short haul network this
November as it continues to adapt to changing restrictions around the globe as
a result of the Covid-19 pandemic.