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* IAG sees July-Sept Q3 capacity at 45% up from 22% in Q2
* CEO says could fly more than 45%
* CEO says ready to fly 75% of 2019 capacity in Q4
* Shares down 3%
* Q2 loss 1.045 billion euros, in line with consensus
(Adds CEO comment, analyst comment, share price)
By Sarah Young
LONDON, July 30 (Reuters) - British Airways-owner IAG
said summer capacity would rise to 45% of pre-pandemic
levels, a more cautious bet than rivals as its transatlantic
business has yet to fully reopen.
IAG's 45% Q3 capacity plan is a significant jump over the
22% it flew in the March-June quarter, but puts it some way
behind Air France-KLM, easyJet and Ryanair
, which IAG's CEO blamed on the partial closure of the
U.S. market.
"The weight of our network is balanced to the Atlantic,"
Chief Executive Luis Gallego told reporters on Friday, adding
that it was possible that IAG would beat its 45% plan this
quarter.
"That's what we think we are going to fly, but we are ready
to fly more," he said.
For the October-December quarter, IAG was ready to fly up to
75% of its 2019 capacity, he said.
British Airways, usually IAG's most profitable airline, has
been hammered by restrictions in its home market that have been
tighter and lasted longer than those in Europe, allowing the
group's Spanish airlines Iberia and Vueling to recover faster.
They are set to fly around 70% of their capacity this
summer, showing how UK restrictions and last minute rule changes
have dragged on BA.
Britain will lift more restrictions on arrivals from the
United States on Monday, allowing a partial reopening of the
transatlantic, but the United States continues to be closed to
UK and European arrivals.
Shares in IAG traded down 3% in early deals. The stock has
gained 24% over the last six months.
"Further opening up of the U.S. market during Q3, which may
yet happen, would be a significant catalyst for the stock," said
Bernstein analyst Daniel Roeska.
Air France-KLM, which compared to BA has benefited
from the earlier opening of Europe to U.S. passengers, said on
Friday it expected third quarter capacity at 60-70% of 2019
levels.
Short-haul rivals EasyJet and Ryanair are
also ahead of IAG, aiming for 60% summer capacity and July
passenger numbers at two-thirds of 2019 levels
respectively.
Low levels of flying due to ongoing pandemic restrictions
meant that for the three months to the end of June, IAG reported
an underlying operating loss of 1.045 billion euros ($1.24
billion), in line with a consensus forecast for a 1.036 billion
euros loss.
The group declined to give a profit forecast, citing
COVID-19 uncertainty. It said it had liquidity of 10.2 billion
euros and it continued to preserve cash by reducing its cost
base.
Asked if there could be further redundancies after BA last
year announced more than 10,000 jobs would go, Gallego said that
was not what he expected, but that he would like to see the UK
furlough scheme extended to the end of 2021.
($1 = 0.8418 euros)
(Reporting by Sarah Young; editing by Guy Faulconbridge and
Barbara Lewis)
