The parent company associated with British Airways (BA) has exposed further losses and downgraded the outlook as renewed coronavirus limitations knock demand for travel.
International Airlines Group, including Iberia and Aer Lingus in the stable of airlines, reported the €1. 3bn (£1. 17bn) reduction for the third quarter of the season to the end of September within an unexpected update to the market.
The figure compares to money of almost €1. 4bn within the same period last year and arrived far worse than the €920m reduction that City analysts had anticipated.
IAG, which applied a management shake-up after the leaving of chief executive Willie Walsh within September that saw BA’s manager Alex Cruz ousted , warned it would voyage no more than 30% of the capacity this flew in the same period this past year in the current fourth quarter.
The company said: “Recent overall reservations have not developed as previously anticipated due to additional measures implemented by many people European governments in response to a second influx of COVID-19 infections, including a boost in local lockdowns and expansion of quarantine requirements to holidaymakers from an increasing number of countries.
“At the same time frame, initiatives designed to replace quarantine intervals and increase customer confidence in order to book and travel, such as pre-departure testing and air corridor agreements, have not been adopted by government authorities as quickly as anticipated. ”
IAG said that the continuing interruption meant it would no longer meet a vital breakeven net cash flow target within the fourth quarter.
Coronavirus lockdowns globally and shifting national limitations have taken a heavy toll on the aviators sector.
A Skies News jobs tracker shows the has suffered most in terms of lost work, with BA alone expecting to have got cut up to 13, 000 functions once its downsizing has been finished.