British Airways owner posts loss as pandemic stagnates | Instant News

LONDON (AP) – The parent company of British Airways fell to a loss of 3.8 billion euros ($ 4.5 billion) in the first six months of the year as travel restrictions linked to the COVID-19 pandemic has eaten away at the results. By comparison, IAG made a profit of 806 million euros in the same period a year ago. Passenger traffic fell 98.4% in the second quarter due to government travel restrictions. The company has announced its intention to raise 2.75 billion euros through a proposed capital increase. Managing Director Willie Walsh predicted passenger numbers would not return to pre-virus levels until 2023 and that he was “restructuring its cost base to reduce the size of each airline.” The group has already announced 12,000 reductions at British Airways. Walsh says the scale of the challenge overshadows the downturn the industry faced after the September 11, 2001 attacks. “Anyone who thinks this is just a temporary slowdown and can therefore be corrected by temporary measures, I am afraid of seriously misjudging what the industry is going through, ”he said.

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