Aer Lingus owner records €1.3 billion loss

The loss was significantly worse than analysts' expected

IAG said that for the fourth quarter it would fly no more than 30% of the capacity it flew in the same period last year. Picture: Denis Scannell

Aer Lingus owner IAG reported a €1.3 billion loss in the third quarter as coronavirus restrictions continue to depress travel, forcing it to further downgrade its capacity outlook for the rest of the year.

The airline group, which also operates British Airways, Iberia and Vueling, announced its preliminary results for the three months to the end of September one week earlier than expected.

The €1.3 billion loss was significantly worse than the €920 million analysts' consensus and behind the €1.4 billion of profit it made in the same period last year.

The results were the first to be published under new CEO Luis Gallego who took over from Willie Walsh in early September.

IAG said that for the fourth quarter it would fly no more than 30% of the capacity it flew in the same period last year, lower than previous guidance, which had already been cut.

With less flying, the group warned it no longer expected to reach breakeven in terms of net cash flows from operating activities during the fourth quarter, but said that liquidity was strong.

The company raised €2.74 billion from shareholders which it received in early October, boosting its liquidity to €9.3 billion.

- Reuters