IAG narrows losses, sees profitability in 2022, but $3.4 billion loss in 2021


Corrections & Amplifications

This headline was corrected at 0738 GMT to reflect IAG’s 9-Mos Rev EUR4.92B, not 3Q.

By Anthony O. Goriainoff

International Consolidated Airlines Group S.A. said Friday that its third-quarter operating loss narrowed as revenue rose, and that it is planning for a return to profitability in 2022.

The parent company of British Airways and Iberia said that for the three months to Sept. 30 its operating loss was 452 million euros compared with an operating loss of EUR1.92 billion for the year-prior period.

Adjusted operating loss–a metric that strips out exceptional and other one-off items–was EUR458 million compared with a loss of EUR1.31 billion the year before.

The London and Madrid-listed airline group said that for 2021 as a whole it expects to report an adjusted operating loss of EUR3.0 billion.

Revenue for the quarter was EUR2.71 billion compared with EUR1.22 billion for the third quarter of 2020 and consensus of EUR2.76 billion, taken from FactSet and based on 13 analysts’ forecasts. The company said long-haul traffic was a significant driver of revenue.

The company said passenger capacity in the quarter reached 43% of 2019’s level, and that the passenger demand levels seen in 2019 won’t be reached until 2023.

“We continue to capitalize on surges in bookings when travel restrictions are lifted,” Chief Executive Luis Gallego said

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

This article was originally published by Marketwatch.com. Read the original article here.

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