EU’s Largest Airline Holding Posts €1.3B Net Loss
Preliminary results for the third quarter were released by IAG Holding, which includes Irish Aer Lingus, British Airways, as well as Vueling, Spanish Iberia and Stage.
The company had a net loss of 1,3 billion euros, compared to a net profit of 1,4 billion euros the year before. The loss was even higher than that expected by analysts for a net profit of EUR 920 million. IAG’s sales have fallen six-fold to EUR 1,2 billion.
The company has announced that it will run at about 30 percent from last year in the fourth quarter; IAG previously predicted a pace of 40 percent. The reduction is happening at a time when new quarantine policies and regulations are being enforced as the number of people in various countries becoming ill is rising.
« Because of the additional steps adopted by several European governments in reaction to the second wave of COVID-19, including the spread of local lockdowns and the extension of quarantine conditions for travelers from a growing number of countries, the overall number of bookings dropped short of estimates, » says the IAG.
IAG shares have dropped by 5 percent since the release of the quarterly results.