British Airways parent cuts flight schedule to 30% of last year

IAG, the owner of BA, slashed Q4 capacity and no longer expects to break even during the period as fresh travel restrictions and virus infections keep would-be travelers at home. The airline group, which also includes Iberia and Aer Lingus, now plans to operate no more than 30% of its usual schedule in the three months, according to a statement Thursday. The company had expected to gradually rebuild services and operate at 54% strength in the period. A resurgence in Covid-19 infections that ended a comeback for summer air traffic is now bearing down on the slower part of the year. Airlines have been clamoring for an easing of European travel requirements to spur demand, but with cases rising there’s little sign authorities will comply in the near term. IAG’s shares fell 3.6% as of 8:26 a.m. in London, extending the year’s decline to 77%. This “demonstrates the challenges faced by legacy airlines in managing through the current crisis,” Daniel Roeska, an analyst at Sanford C. Bernstein, said in a note to clients. “Management will need to significantly lower monthly cash burn to avoid significantly depleting resources by next summer.” IAG said it remains well-capitalized with liquidity of E9.3b. The company also reported a Q3 operating loss of E1.3b, with revenue plunging 83%.<br/>