5th Nov 2021 08:21
(Alliance News) - International Consolidated Airlines Group SA on Friday forecast a return to profit in 2022 as the group reported a narrowed loss in the third quarter of 2021 amid improved operating conditions.
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 months to June 30.
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.
Third quarter revenue surged to EUR2.71 billion from EUR1.22 billion.
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.
"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.
"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."
Gallego said the group was focused on getting ready to operate as much capacity as possible in the short term and "ensuring IAG is set up to return to profitability in 2022".
Looking ahead, IAG said it expects its 2021 operating loss before exceptional items to be around EUR3.0 billion. This would be narrowed from the EUR4.37 billion posted for 2020.
Fourth quarter capacity is forecast to be approximately 60% of 2019, resulting in total 2021 capacity being 37% of the 2019 level.
FTSE 100-listed IAG shares were trading 2.2% lower in London on Friday morning at 166.12 pence each.
By Will Paige; [email protected]
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