5th Nov 2021 08:02
(Alliance News) - International Consolidated Airlines reported a narrowed third quarter loss on Friday with a "significant recovery underway".
The parent company of British Airways and Aer Lingus said passenger capacity in the three months to September 30 was 43% of 2019, up from 22% in the three moths to June 30. Current passenger capacity visibility for quarter to December 31 is for around 60% of 2019 capacity.
IAG said cargo carried in the third quarter was up 37% on 2020, reaching 73% of 2019 levels, despite a reduction in cargo-only flights as passenger capacity increased, with 657 cargo-only flights operated in the quarter compared with 1,371 in the second quarter.
Reported operating loss for the third quarter totalled EUR452 million, narrowed from EUR1.92 billion a year ago. For the first nine months of 2021, the company reported an operating loss of EUR2.49 billion, narrowed from EUR5.98 billion a year ago.
"There's a significant recovery underway and our teams across the group are working hard to capture every opportunity. We continue to capitalise on surges in bookings when travel restrictions are lifted," said Chief Executive Luis Gallego.
As current fuel prices and exchange rates, IAG expects its full-year operating loss before exceptional items will be around EUR3.0 billion. This would be narrowed from the EUR4.37 billion posted for 2020.
Gallego said: "The full reopening of the transatlantic travel corridor from Monday is a pivotal moment for our industry. British Airways is serving more US destinations than any transatlantic carrier and we're delighted that we can get our customers flying again. Longhaul traffic has been a significant driver of revenue, with bookings recovering faster than shorthaul as we head into the winter."
In the short term, he added, the focus is on ensuring IAG is set up to return to profitability next year.
Shares in IAG were up 1.9% in early dealings in London.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: down 0.1%, or 4.03 points, at 7,275.88
----------
Hang Seng: down 1.8% at 24,777.90
Nikkei 225: closed down 0.6% at 29,611.57
DJIA: closed down 33.35 points, or 0.1%, at 36,124.23
S&P 500: closed up 19.49 points, or 0.4%, at 4,680.06
Nasdaq Composite: closed up 128.72 points, at 0.8%, at 15,940.31
----------
EUR: up at USD1.1559 (USD1.1547)
GBP: flat at USD1.3503 (USD1.3505)
USD: up at JPY113.77 (JPY113.72)
Gold: up at USD1,796.62 per ounce (USD1,793.00)
Oil (Brent): down at USD80.78 a barrel (USD82.05)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
Friday's Key Economic Events still to come
1100 CET EU retail trade
1100 GMT Ireland live register
0830 EDT US monthly jobs report
----------
The UK led the way for shopper footfall among the major European economies in October, in an encouraging sign for retailers ahead of Christmas, figures show. Total UK footfall was down by 14% in October compared with two years ago – adjusted to avoid the impact of the pandemic – with improving from September's 17% fall, according to British Retail Consortium-Sensormatic IQ data. The figure for the number of people entering a shop or shopping area is an improvement on the three-month average decline of 16% and ahead of Spain's 20% fall, Germany 26% drop and a 35% plunge in both Italy's and France. Footfall on UK high streets declined by 18% on October 2019, an improvement on last month's rate and above the three-month average decline of 22%.
----------
Europe has seen a more than 50% jump in coronavirus cases in the last month, making it the epicentre of the pandemic despite an ample supply of vaccines, top officials at the World Health Organisation said. "There may be plenty of vaccine available, but uptake of vaccine has not been equal," WHO emergencies chief Michael Ryan said during a press briefing. He called for European authorities to "close the gap" in vaccinations. However, WHO director-general Tedros Adhanom Ghebreyesus said countries that have immunised more than 40% of their populations should stop and instead donate their doses to developing countries that have yet to offer their citizens a first dose. "No more boosters should be administered except to immunocompromised people," he said.
----------
BROKER RATING CHANGES
----------
BERENBERG RAISES FLUTTER TO 'BUY' (HOLD) - PRICE TARGET 15000 (15800) PENCE
----------
BARCLAYS RAISES GLAXOSMITHKLINE TO 'EQUAL WEIGHT' (UNDERWEIGHT) PRICE TARGET 1600(1400)P
----------
JPMORGAN CUTS THG HOLDING TO 'NEUTRAL' ('OVERWEIGHT') - TARGET 236 (347) PENCE
----------
COMPANIES - FTSE 100
----------
Prague, Czechia-based software company Avast said NortonLifeLock shareholders approved the London-listed firm's takeover on Thursday. In August, Avast agreed to be bought by Tempe, Arizona-based NortonLifeLock in a deal worth about USD8.6 billion. For each Avast share, the offer is USD2.37 in cash, plus 0.1937 of a NortonLifeLock share.
----------
COMPANIES - FTSE 250
----------
Insurer Beazley said momentum from the first half has persisted into the second half, with rate rises and premium growth that have exceeded its expectations. Gross premiums written in the nine months to September 30 increased by 29% to USD3.27 billion from USD2.53 billion a year earlier. Premium rates on renewal business increased by 23%. Beazley said its initial estimate of catastrophe losses for the third quarter is USD125 million net of reinsurance. This includes an early estimate of losses in respect of Hurricane Ida in the US of USD85 million and USD40 million for the European floods. Elsewhere, the company said its investments returned 0.2% in the third quarter and 1.4% in the first nine months of 2021. Returns from Beazley's fixed income investments have been low, reflecting the low and rising yield environment, although the company's inflation-linked bond exposures have made a positive contribution, it said.
----------
4imprint Group reported further "encouraging" progress against a backdrop of continuing uncertain and volatile market conditions. The London-based direct marketer of promotional merchandise said weekly order totals have averaged 2% above 2019 levels in the second half of the year to the end of October. "We remain very confident in the group's strategy, business model and competitive position. The demand numbers so far in the second half of 2021 show clearly that our offering continues to resonate with our target customers," the company said in its statement Friday. However, 4imprint warned that pandemic-related global and local supply chain issues continue to cause inventory availability challenges, increased production times and product cost inflation in the second half of 2021.
----------
COMPANIES - MAIN MARKET AND AIM
----------
Flavoured cordial Vimto producer Nichols said it expects to report 2021 profit ahead of current market expectations. The company said revenue for the first nine months of 2021 was ahead of expectations, increasing by 17% year-on-year to GBP107 million. The Vimto brand has continued to deliver a strong performance across all of its markets, Nichols highlighted. Going forward ,the company said it sees adjusted pretax profit for 2021 ahead of the current market consensus, which stands at GBP19.1 million. Nichols now anticipates that adjusted pretax profit for the year will be in the range of GBP21 million to GBP22 million. For 2020, the company posted adjusted pretax profit of GBP11.6 million.
----------
COMPANIES - GLOBAL
----------
Honda Motor Co lowered annual guidance after its second quarter earnings fell, as the automotive sector grapples with component shortages. However, the difficult second quarter contrasted with a buoyant start to the financial year for Tokyo-based company. Earnings for the whole of the first half were in growth territory. In the second quarter ended September 30, revenue fell 6.8% year-on-year to JPY3.404 trillion from JPY3.651 trillion a year earlier. Pretax profit dropped 28% to JPY249.0 billion from JPY345.7 billion. For the whole of the first half, however, revenue was 21% higher annually at JPY6.988 trillion. Pretax profit was up more than double at JPY560.3 billion. Honda said it suffered from "unfavourable factors" during the half. They included the "supply shortage of certain parts including semiconductors". The company lowered its outlook for the financial year. Pretax profit is now expected at JPY860.0 billion, and not JPY1.00 trillion as it previously guided for.
----------
Mitsubishi upped its annual forecast after posting much-improved first half earnings. The Tokyo-based conglomerate operates in finance, banking, energy, machinery, chemicals and food segments. Revenue in the six months to September 30 jumped 35% year-on-year to JPY7.727 trillion, about USD67.98 billion, from JPY5.728 trillion. Pretax profit surged to JPY499.37 billion from JPY143.48 billion a year earlier. Mitsubishi put its improved performance down to "rising prices and increased transaction volumes owing to improved market conditions". In addition, it now expects a sharper profit surge. Profit for the year attributable to owners of the parent is forecast at JPY740.00 billion, lifted from previous guidance of JPY380.00 billion. It would represent a sharp hike from JPY172.55 in the year ended March 2021.
----------
Airbnb on Thursday reported record-high profit in the recently ended quarter as bookings surpassed pre-pandemic numbers, with remote work trends boosting the home-sharing platform. Users spent nearly USD12 billion on overnight stays and associated "experiences" through Airbnb, up significantly from the same period a year ago as well as from the same quarter in 2019 before the pandemic stalled the travel industry. Airbnb reported a record-high quarterly profit of USD834 million on unprecedented revenue of USD2.2 billion. "Something bigger than a travel rebound is happening," Airbnb said in a letter to shareholders. "The world is undergoing a revolution in how we live and work." Remote work has freed people to work anywhere, including Airbnb lodgings at desirable destinations, according to the San Francisco-based company.
----------
Friday's Shareholder Meetings
All Star Minerals PLC - AGM
Go-Ahead Group PLC - AGM
Hochschild Mining Inc - EGM re Aclara Resources demerger
----------
By Lucy Heming;Â [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
International Airlines