Pandemic pushes BA owner IAG to a loss of € 4.4 billion in 2020 By Reuters

© Reuters.

© Reuters. British Airways planes are seen at Heathrow Airport in West London

LONDON (Reuters) – British Airways owner IAG (LON 🙂 posted a loss of 4.37 billion euros ($ 5.31 billion) for 2020 after a year of minimal flights and burning cash, and warned on Friday not to I could tell what would happen. in 2021. Worsening travel prospects and tighter restrictions introduced by countries in the past two months have threatened to spoil Europe’s critical summer season and leave some operators in need of another round of financial support, analysts warn. IAG said the current uncertainty and duration of COVID-19 meant it was unable to provide a forecast of future earnings, illustrating the scale of the challenge for the new head of IAG, Luis Gallego, who has been in office for six months. The group’s focus continues to be to cut costs to reduce cash spending and try to weather the crisis. IAG said on Friday it had a total liquidity of 10.3 billion euros, and now there are indications that there could be some relief on the way for its strained finances. UK-centric airlines were boosted earlier this week when the UK unveiled plans for travel markets to possibly reopen from mid-May, prompting a flood of bookings, but uncertainty remains whether it will include IAG’s long-range routes. “Getting people to travel again will require a clear roadmap to remove the current restrictions when the time is right,” IAG’s Gallego said in a statement Friday. “We are calling for common international testing standards and the introduction of digital health passes to safely reopen our skies.” IAG’s 2020 operating loss before one-off items was slightly better than the consensus forecast of a loss of € 4.45 billion, after it plunged to a loss of € 1.165 billion in the October-December quarter. ($ 1 = 0.8230 euros)

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