30 Oct British Airways owner: Air travel demand unlikely to fully recover before 2023 | Business News
British Airways owner IAG says demand for air travel is unlikely to fully recover before 2023.
International Airlines Group, which also owns Iberia, Aer Lingus and Vueling, was publishing further details of its July-September period, having already announced a worse-than-expected quarterly loss of €1.3bn (£1.17bn) last week.
Luis Gallego, who took over as IAG’s chief executive officer in September, said the results “demonstrate the negative impact of COVID-19” but he also blamed “constantly-changing government restrictions”.
Mr Gallego said restrictions such as quarantine for travellers arriving in the UK from certain countries “create uncertainty for customers and make it harder to plan our business effectively”.
He joined others, such as Heathrow chief executive John Holland-Kaye, to call for governments to introduce pre-departure and possibly post-flight testing to lessen the need for quarantine.
“This would open routes, stimulate economies and get people travelling with confidence,” he added.
“When we open routes, there is pent up demand for travel.
“However, we continue to expect that it will take until at least 2023 for passenger demand to recover to 2019 levels.”
IAG said there were “no immediate signs of recovery” from the pandemic, adding that it expects capacity in the fourth quarter to be no more than 30% of what it was at the same time last year.
The group said it has cut cash operating costs by 54% and Mr Gallego said “significant progress” had been made on restructuring.
Staff numbers have been cut by 10,000, most of the jobs being lost at BA.
Overnight two other airline groups presented financial results – Japan Airlines and Air France/KLM.
Japan Airlines said it expects a record operating loss of up to 380 billion yen (£2.81bn) in the year to the end of March, with demand expected to be at less than 50% by then, due to the pandemic.
The airline posted a second quarter operating loss of 92.9 billion yen, compared with a profit of 82.9 billion a year ago.
Air France/KLM revealed a €1.05bn (£950m) quarterly operating loss and a 67% drop in third-quarter revenue to €2.52bn (£2.3bn).