IAG: stock rises... on big loss?
(CercleFinance.com) - On Friday International Consolidated Airlines Group (IAG), which owns British Airways and Iberia, reported a Q3 loss of 1.
3 billion euros, due to the impact of the coronavirus pandemic on its revenues.
Quarterly revenues collapsed 83% in Q3, from 7.3 billion euros to 1.2 billion in one year.
IAG says that it carried only 6.6 million passengers in the past quarter, a fraction of almost 34.6 million passengers in Q3 2019.
The group, which points out that it has had to take a number of measures to preserve its cash flow, including the introduction of forced leaves for its employees, says it does not expect air traffic levels to return to normal before FY 2023 at the earliest.
IAG therefore warns that it may need to find new sources of financing to deal with this difficult scenario, even after its successful recent 2.7 billion euro capital increase and the receipt of 800 million dollars as part of the renewal of its partnership with American Express.
Its net loss for the first nine months of the year reached 3.2 billion euros.
Despite all this, the share was up over 1.5% in London on Friday morning.
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