Thursday, 22 October 2020

IAG cuts even more capacity for the rest of the year.....

IAG, the owner of British Airways is planning more stinging cuts to its winter schedule as  "high uncertainty of the current environment" remains.

IAG has seen revenues slump by 83% to €1.2 billion during the third quarter of this year, the same period last year, the group was raking in €7.3 billion in 2019.  Capacity shrank by 78.6%, while passenger numbers fell by 88%.  All of which has left the group reporting an operating loss of around €1.3 billion this quarter. 

Because of the falling demand, increased entry and quarantine conditions, the group has said that capacity for the rest of this year will be "no more than 30%" of the 2019 levels and that looks set to continue until we're well in to 2021.

IAG’s chief financial officer, Stephen Gunning, aid: "Recent overall bookings have not developed as previously expected due to additional measures implemented by many European governments in response to a second wave of Covid-19 infections, including an increase in local lockdowns and extension of quarantine requirements to travellers from an increasing number of countries.  At the same time, initiatives designed to replace quarantine periods and increase customer confidence to book and travel, such as pre-departure testing and air corridor arrangements, have not been adopted by governments as quickly as anticipated."

Recommended for you...

No comments: