RE: Volume of posts29 Oct 2021 17:18
Media becoming bearish too. Lol.
When British Airway-owner IAG reported its half-year results at the end of July, it cushioned the blow of an operating loss of $2.18bn by highlighting the reopening of the transatlantic travel corridor as a positive development for the months ahead. Indeed, across the industry it was hoped that the lifting of overseas travel restrictions would provide a much-needed fillip to airlines, as they look to ramp up capacity to meet pent-up demand. Unfortunately for the airlines, the light at the end of a very long tunnel seems to be the train of rising fuel costs, higher airport charges and the prospect of further Covid restrictions.
Unsurprisingly, IAG’s CEO Luis Gallego declined to offer a financial outlook for the second half of the year, citing uncertainty over travel restrictions and the ongoing impact of Covid-19. Although the US and the UK are in the process of removing travel restrictions, uncertainty persists. Consumer confidence in air travel remains patchy, while in Asia infection rates are rising again, bringing another round of travel restrictions. IAG said that Q3 capacity would rise to 45% of pre-pandemic levels. It will be interesting to see if this target was met when the company announces its Q3 results.