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British Airways owner International Airlines Group swung to a third-quarter loss and warned it no longer expected to breakeven on cash flows in the fourth quarter after slashing its capacity amid a surge in Covid-19.
IAG said it now planned for capacity in the fourth quarter of 2020 to be no more than 30% compared to 2019, citing the high uncertainty of the current environment.
'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,' the company said.
For the third quarter, the operating result before exceptional items was a €1.3 billion loss compared to a €1.4 billion profit last year, and revenue declined by 83% to €1.2 billion compared to €7.3 billion last year.
Passenger capacity, expressed in available seat kilometres, declined by 78.6% in the quarter, while passenger traffic, measured in terms of revenue passenger kilometres, declined by 88.0%.
The seat load factor declined by 38.8 points to 48.9%.