International Airlines Group, parent of British Airways, Iberia, Aer Lingus and Vueling, has posted an operating loss of €1.92 billion for the third quarter, including exceptional items relating to fuel hedges plus restructuring costs.
Passenger revenue for the nine months to the end of September was €4.83 billion, 71.4 percent lower from the same period in 2019.
IAG chief executive officer Luis Gallego said: "These results demonstrate the negative impact of Covid-19 on our business, but they're exacerbated by constantly changing government restrictions. This creates uncertainty for customers and makes it harder to plan our business effectively.
"We are calling on governments to adopt pre-departure testing using reliable and affordable tests with the option of post-flight testing to release people from quarantine where they are arriving from countries with high infection rates. This would open routes, stimulate economies and get people travelling with confidence. When we open routes, there is pent-up demand for travel."
He added: "We continue to expect that it will take until at least 2023 for passenger demand to recover to 2019 levels. The group has made significant progress on restructuring and we continue to reduce our cost base and increase the proportion of our variable costs.
"We have also successfully completed a €2.74 billion capital increase in the quarter. It strengthens our financial and strategic position and makes IAG better placed to take advantage of a recovery in air travel demand."
The group said it had reduced employee numbers at British Airways and Aer Lingus by around 10,000, for which it recognized a €275 million exceptional cost.
British Airways this week said it would operate 52 long-haul routes alongside its short-haul network this November as it continues to adapt to changing restrictions around the globe as a result of the Covid-19 pandemic.
Originally published in BTN Europe.