IAG Q3 Loss Narrows On Strong Revenue Growth; Sees Narrower Adj. Operating Loss In FY21

International Consolidated Airlines Group S.A. (IAG.L, ICAGY) reported Friday that its third-quarter loss before tax narrowed to 714 million euros from last year’s loss of 2 billion euros.

Loss after tax for the period was 574 million euros, compared to loss of 1.76 billion euros a year ago.

Adjusted pre-tax loss was 747 million euros, compared to loss of 1.38 billion euros last year.

Operating loss for the third quarter narrowed to 452 million euros from prior year’s restated loss of 1.92 billion euros. Adjusted operating loss was 485 million euros, compared to loss of 1.31 billion euros a year ago.

Total revenue surged to 2.71 billion euros from prior year’s 1.22 billion euros.

Capacity in the quarter, measured in available seat kilometres or Aks, were 40.08 billion ASKs, up from 19.77 billion ASKs last year. Revenue passenger kilometres, grew to 27.72 billion RPKs from 9.67 billion RPKs a year ago.

Seat factor was 69.1 percent, up 20.2 percentage points from 48.9 percent a year earlier.

The company carried 15.48 million passengers in the quarter, significantly higher than last year’s 6.59 million passengers.

Looking ahead, IAG expects its 2021 operating loss before exceptional items to be approximately 3.0 billion euros. In the year 2020, the company’s operating loss before exceptional items was 4.37 billion euros.

The fourth-quarter capacity, measured in ASKs, is expected to be approximately 60 percent of 2019, resulting in 2021 capacity of 37 percent of the 2019 level.

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