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BUSINESS NEWS


IAG set to lose €3bn but eyes 2022 profit return


Ian Taylor


British Airways parent International Consolidated Airlines Group (IAG) reported “a significant recovery under way” despite revealing an operating loss of almost €2.5 billion for the nine months to September. IAG chief executive Luis


Gallego reported premium leisure “performing strongly” at both Iberia and BA and “early signs of a recovery in business travel” despite an operating loss of €452 million for the July-to-September quarter. Gallego hailed the reopening of


the US border as “a pivotal moment”, noting “surges in bookings when travel restrictions are lifted” and said: “Long-haul traffic has been a significant driver of revenue, with bookings recovering faster than short-haul as we head into the winter. “Our operating cashflow was


positive for the first time since the start of the pandemic.” But Gallego added: “Iberia and


Vueling continued to be the best performers in the group. Iberia returned to profitability while Vueling


BA is planning to revive short-haul


flying from Gatwick


reached break-even at the operating level. Both seized opportunities to strengthen their positions on routes to Latin America.” IAG reported an operating loss of


€1.9 billion for the same quarter last year and almost €6 billion for the first nine months of 2020. The group forecast a full-year


operating loss of €3 billion for 2021, but aims to return to profit in 2022. Capacity for the current quarter is planned at 60% of 2019 levels, having hit 43% during July to September. Plans for a new BA short-haul


operation at Gatwick moved forward after the carrier agreed a deal on pay


and conditions with the Unite union at Gatwick which represents cabin crew, engineers and ground staff. BA reached an agreement with pilots’ union Balpa last month. Talks with ground handling staff have yet to be concluded. BA chief executive Sean Doyle


told staff: “Our plans are progressing well. It looks likely we’ll be up and


running to fly the summer schedule.” ●Separately, Amadeus reported a first quarterly ‘adjusted’ profit since the start of the pandemic of €24 million for the three months to September. Rival Sabre reported a third-quarter operating loss of $157 million and net loss of $241 million.


Lufthansa heads ‘back to black’ as bookings hit ‘80%’


Lufthansa Group reported new bookings “back at 80% of the pre- crisis level” following confirmation of the US border reopening and its first quarterly “adjusted” operating profit since the pandemic began. Group chief executive Carsten


Spohr hailed a “milestone on our way out of the crisis”, saying: “We are back to black.” The group, which comprises


Lufthansa, Swiss, Austrian Airlines, Brussels Airlines and Eurowings, reported a net loss of €72 million for the three months to September despite “a strong increase in demand” in the summer as its carriers doubled capacity over the previous quarter. Spohr noted business travel


“also recovered significantly” but revealed a €1.9 billion loss for the nine months to September, down from €5.6 billion in 2020. The group operated 50% of its


2019 capacity in the third quarter, with passenger numbers reaching 46% of the 2019 level, and plans to operate 60% till the end of the year rising to 65% in the first quarter of 2022 and 80% next summer. The carrier launched a voluntary


redundancy programme last week as it seeks to axe another 3,000 jobs.


Wizz Air pursues expansion plans despite €121m loss


Wizz Air reported a half-year loss of €121 million, despite making an operating profit of €57 million during July to September. However, chief executive József Váradi hailed “Wizz Air’s return


travelweekly.co.uk


towards 2019 traffic levels” over the summer, reporting the Hungary- based budget carrier’s capacity “peaked at 98%” of the 2019


level in August and said: “We are stimulating demand with pricing given the continued impact of Covid-19.” The half-year loss improved


from €243 million in 2020, but Wizz still recorded a net loss of €6.5 million in the summer months and Váradi forecast an operating loss of €200 million in the final quarter of this year which “may carry over” into the first quarter of 2022 – the fourth quarter of


the airline’s financial year. He confirmed the carrier aims


to operate 500 aircraft by the end of the decade, having taken delivery of 12 Airbus A321neo aircraft in the six months to September and with 26 aircraft due to join by summer 2022 taking the fleet to170 – a 52% rise in capacity on summer 2019. Váradi said: “This will allow


us to maximally take advantage of market opportunities and next year’s peak season.”


11 NOVEMBER 2021 79


PICTURE: Shutterstock/Ondrej Zabransky


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