The Group reported a year-over-year third quarter revenue decline of 83 percent to €1.2 billion, compared to €7.3 billion during Q3 2019. IAG’s third quarter loss was €1.3 billion, versus a profit of €1.4 billion last year.
Today (October 22, 2020), the International Consolidated Airlines Group (IAG) reported their preliminary third quarter financial results. The company reported a year-over-year revenue decline of 83 percent to €1.2 billion compared to €7.3 billion in the same period last year. The Group’s third quarter operating loss was €1.3 billion, versus a €1.4 billion profit in Q3 2019. IAG’s passenger capacity as expressed in available seat kilometers (ASK) declined year-over year during the quarter by 78.6 percent, while passenger traffic, measured in revenue passenger kilometers (RPK) declined 88 percent. The Group’s third quarter load factor declined year-over-year by 38.8 points to 48.9 percent.
The company announced a reduction in Q3 capacity from -74 to -78 on September 10, 2020 and plans on reducing capacity in the fourth quarter from -46 to -60 percent due to the reintroduction of COVID-19 related quarantine restrictions by many European governments. With a second wave of infections, the Group now estimates that they are unlikely to operate more than 30 percent of capacity in the fourth quarter, compared to 2019, and IAG no longer expects to reach breakeven net cash flows during Q4 2020.
IAG’s liquidity position remains strong and as of September 30, 2020, the Group had a total of €6.6 billion in liquidity including €5.0 billion in cash, cash equivalents and interest-bearing deposits, as well as €1.6 billion in undrawn and committed general and aircraft credit facilities. Additionally, in early October the Group received gross proceeds from a capital increase of €2.14 billion, bolstering their total pro-forma liquidity position to €9.3 billion.
Source: IAG (LEI: 959800TZHQRUSH1ESL13)