International Consolidated Airlines (LSE: IAG) saw passenger capacity reach 43.4% of its 2019 levels in Q3. Reporting on the third quarter on Friday, the company said it is planning to reach around 60% of capacity in the fourth quarter.
IAG carried 37.2% more cargo in the third quarter compared to the same period a year previously. And that was up to 73.4% of the equivalent 2019 levels.
Chief executive Luis Gallego said: “All our airlines have shown improvements with the Group’s operating loss more than halved compared to previous quarters. In Q3, our operating cash flow was positive for the first time since the start of the pandemic and our liquidity is higher than ever, reaching €12.1bn on a pro forma basis at the end of October.”
On the financial front, the British Airways owner reported a Q3 operating loss of €452m. Over the nine months to 30 September, reported operating losses reached €2,487m. The loss after tax and exceptional items for the nine months came in at €2,622m.
IAG liquidity
IAG revealed that cash operating costs in the quarter came to €260m per week. But it said it has strong liquidity. Liquidity reached €10.6bn at the end of September. Of that, €7.6bn was in cash, with a further €3bn in undrawn facilities.
In addition, on 1 November, the company arranged an extra £1bn (€1.2bn) five-year credit facility. Of the latest liquidity figure of €12.1bn, the cash portion has risen to €8bn.
For the full year, IAG expects to report an operating loss of around €3bn at current exchange rates and fuel prices. If passenger capacity in the final quarter rises to the hoped-for 60% level, full-year capacity would reach 37% of 2019 levels.