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British Airways could relaunch up to 50% capacity in July

by LLB Reporter
7th May 20 10:29 am

International Consolidated Airlines Group (IAG) who owns British Airways have tentatively said flight could resume at 50% capacity from July.

IAG said the company are burning money and they do not expect to return to full capacity until 2023.

IAG said coronavirus was having a “devastating impact on the global airline and travel sectors, with the spread of the virus worldwide, resulting in lockdowns and travel restrictions and advisories, particularly from late February 2020 onwards.”

Passenger capacity dropped by 94% in March with nearly all aircraft grounded or operating cargo flights.

The company has a strong balance sheet with £8.7bn available, they have also taken advantage of the Bank of England’s loan scheme.

IAG said capacity was down by 10.5% with an operating loss, before one off costs of £467m.

Willie Walsh, IAG chief executive, said: “The operating result up to the end of February was in line with a year ago. However, March’s performance was severely affected by government travel restrictions due to the rapid spread of Covid-19 which significantly impacted demand.”

He added: “We are planning for a meaningful return to service in July 2020 at the earliest, depending on the easing of lockdowns and travel restrictions around the world.

“We will adapt our operating procedures to ensure our customers and our people are properly protected in this new environment. ”

“However, we do not expect passenger demand to recover to the level of 2019 before 2023 at the earliest. This means group-wide restructuring is essential in order to get through the crisis and preserve an adequate level of liquidity. We intend to come out of the crisis as a stronger group.”

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