IAG: warns of third-quarter loss on dropping sales
(CercleFinance.com) - IAG said it expects to report a large third-quarter loss, due to dropping sales, with the airline group also joining the long string of carriers that are further cutting their capacities.
For the quarter ended 30 September, the owner of British Airways and Iberia said it expects to report an operating loss before exceptional items of 1.3 billion euros, almost a mirror image of the 1.4 billion euro profit posted last year.
Revenue in the quarter collapsed by 83% to just 1.2 billion euros, compared to 7.3 billion euros last year, it said.
Citing the "high uncertainty of the current environment" and the impact of the second wave of COVID-19 infections, IAG said it now plans for fourth-quarter capacity to be no more than 30% compared to 2019.
The London-listed shares were hit as a result, down over 3% on the news.
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