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IAG loses 1.3 billion, with revenue drops of 83%

 

IAG, the group that owns Iberia, British Airways or Vueling, among others, suffered a loss of 1.3 billion euros in the third quarter of this year and a drop in its total income of 83%, as reported today to the National Securities Market Commission (CNMV).

Detailed results for the third quarter will be released on October 30. The group, which has just carried out a capital increase of more than 2,700 million to face the crisis derived from the pandemic, suffers, like all airlines, the collapse of passenger traffic.

IAG’s revenue in the third quarter was 1,200 million euros, compared to 7,266 million in the same period of the previous year. The losses were 1.3 billion, while last year the group had made a profit of 1.425 million.

Passenger capacity (expressed in terms of offered seat kilometers) decreased 78.6% and passenger traffic (transported passenger kilometers) decreased 88.0%.

IAG, which announced a reduction of its capacity in the third and fourth quarters, believes that in response to the high uncertainty in the current environment, capacity in the fourth quarter of 2020 will not be more than 30%, compared to 2019 .

The group assures that recent reserves “have not evolved as expected” due to restrictions and even new confinements approved by many European governments in this second wave of the pandemic.

“Initiatives designed to replace quarantine periods and increase customer confidence in booking and traveling (pre-flight tests and air corridor agreements) have not been adopted by governments as quickly as planned “, they point out.

As of September 30, 2020, IAG had a total liquidity of approximately 6,600 million, of which around 5,000 million corresponded to cash, cash equivalents and remunerated deposits and around 1,600 million euros corresponded to general financing lines and compromised and unused aircraft.

If to this are added the 2,740 million entered after the Capital increase operation, the total liquidity would be approximately 9,300 million euros.

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