The owner of British Airways fell in the third quarter of 2020 and has warned that it no longer expects to break even in the final three months of the year after a second wave of Covid-19 infections across Europe hit bookings.
In an unscheduled update to the market this morning, International Airlines Group (IAG) said that it now planned to operate at no more than 30 per cent capacity in the final quarter of 2020, down from the already-reduced 40 per cent it announced last month. The company said that as a result of this it “no longer expects to reach break-even in terms of net cash flows from operating activities during Q4 2020”.
IAG said that bookings “have not developed as previously expected”, pointing to new measures introduced by European governments in response to a new spike in infections, such as local lockdowns and expanded quarantine requirements. The company also said that pre-departure testing kits at airports and an increase in air corridor arrangements “have not been adopted by governments as quickly as anticipated”.