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BA announce 2nd quarter results/IAG half year - not good news

BA announce 2nd quarter results/IAG half year - not good news

Old Jul 31, 20, 1:56 am
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BA announce 2nd quarter results/IAG half year - not good news

BA announce loss £711m in second quarter and IAG half year loss 3.4 billion Euors. Mind boggling figures but sadly not unexpected.
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Old Jul 31, 20, 2:03 am
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Here’s the link to register for the webcast https://edge.media-server.com/mmc/p/mvts2y4u
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Old Jul 31, 20, 2:14 am
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Capital raise of EUR2.75bn as expected. Qatar will subscribe and take 2 seats on the board. Revenue for the quarter was EUR 741m compared to EUR6,731m in 2019 (ouch)!

Cash burn was at EUR205m per week
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Old Jul 31, 20, 2:14 am
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IAG second quarter passenger capacity operated was down 95.3%, traffic down 98.5%, seat factor down 56.8 percentage points to 28.2%, compared with a year ago. 508,000 passengers carried compared with 31.5 million a year ago (so down 98.4%)
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Old Jul 31, 20, 2:22 am
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Originally Posted by Starship73 View Post
IAG second quarter passenger capacity operated was down 95.3%, traffic down 98.5%, seat factor down 56.8 percentage points to 28.2%, compared with a year ago. 508,000 passengers carried compared with 31.5 million a year ago (so down 98.4%)
Very sober figures and reading there.
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Old Jul 31, 20, 2:45 am
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Some more information here https://www.bbc.co.uk/news/business-53605691

Please can the unions and members finally stop trotting out the now blatantly incorrect line that BA is only suffering a temporary slowdown / BA is taking advantage of Covid to unnecessarily cut costs etc blah, blah, blah. Those loss figures and projections out to 2023 are truly mind boggling and very sad
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Old Jul 31, 20, 2:51 am
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Originally Posted by BOH View Post
Some more information here https://www.bbc.co.uk/news/business-53605691

Please can the unions and members finally stop trotting out the now blatantly incorrect line that BA is only suffering a temporary slowdown / BA is taking advantage of Covid to unnecessarily cut costs etc blah, blah, blah. Those loss figures and projections out to 2023 are truly mind boggling and very sad
On another Aviation website, they are suggesting that BASSA want BA to fail, as they expect the Government to rescue BA.
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Old Jul 31, 20, 2:56 am
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Originally Posted by Starship73 View Post
IAG second quarter passenger capacity operated was down 95.3%, traffic down 98.5%, seat factor down 56.8 percentage points to 28.2%, compared with a year ago. 508,000 passengers carried compared with 31.5 million a year ago (so down 98.4%)
Unbelievable... Sobering numbers.

Originally Posted by Ancient Observer View Post
On another Aviation website, they are suggesting that BASSA want BA to fail, as they expect the Government to rescue BA.
​​​​​​​Equally shocking and unbelievable. I really hope that no employee wants their company to fail.
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Old Jul 31, 20, 3:03 am
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Originally Posted by Ancient Observer View Post
On another Aviation website, they are suggesting that BASSA want BA to fail, as they expect the Government to rescue BA.
Ah, the old "the UK government will never let XXX company fail so if we (unions) force the failure it will have to be nationalised and all our jobs will be saved". Very popular tactic in the 1970s I recall, however, virtually none of the companies are now around.

Personally I think BA will get through this because they are quite agile and do appear smarter than some lame duck airlines that are constantly bailed out by their country, ie AZ. Certainly some tough times ahead for IAG/BA though, I cannot imagine having to make decisions in a company where business has collapsed by 95%. Really unprecedented times for the travel industry
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Old Jul 31, 20, 3:03 am
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IAG currently trades at ca 181p, GS has a 12-month target at 240p. They are reasonably upbeat.
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Old Jul 31, 20, 3:06 am
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Originally Posted by BOH View Post
Some more information here https://www.bbc.co.uk/news/business-53605691

Please can the unions and members finally stop trotting out the now blatantly incorrect line that BA is only suffering a temporary slowdown / BA is taking advantage of Covid to unnecessarily cut costs etc blah, blah, blah. Those loss figures and projections out to 2023 are truly mind boggling and very sad
Can we please, please, please have a moment of respite from the TU-bashing, Alex-bashing that has locked at least three other threads before? I'd love for this thread not to be locked.
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Old Jul 31, 20, 3:25 am
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Slide 21 (CAPEX halved for 3 years, for both airplanes and non-airplanes) is a bit of a wake-up call for those who want new lounges, new seats, new catering and so on.
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Old Jul 31, 20, 3:31 am
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Originally Posted by 13901 View Post
Slide 21 (CAPEX halved for 3 years, for both airplanes and non-airplanes) is a bit of a wake-up call for those who want new lounges, new seats, new catering and so on.
I will take a look later, interested to see whether any new aircraft on order for delivery +12 months out are to be deferred. This will be quite a key statement I think, given some huge LH capacity has been taken out overnight with the 744 wfu.
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Old Jul 31, 20, 3:33 am
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Originally Posted by BOH View Post
I will take a look later, interested to see whether any new aircraft on order for delivery +12 months out are to be deferred. This will be quite a key statement I think, given some huge LH capacity has been taken out overnight with the 744 wfu.
Yes. Effectively halved over 3 years.

Also, interesting comment from Luis Gallego: by not being public, or having received public $$$, they're able to do acquisitions, pay dividends etc.

from slide 23:

53 Long Haul aircraft (15 A340-600s, 32 B747-400s, 4 A330-200s and 2 B777-200s)
Maintain plan to return 20 leased aircraft due to expire in 2020
from slide 31:

Exiting 747 fleet through early retirements • Temporary grounding of 4 A380s and up to 6 777s • Exiting A318 fleet • Early retirement of 13 Airbus narrow bodies • Temporary grounding of up to 18 narrow body aircraft
-46% of flying by Q4 2020, worse than what was thought before.
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Last edited by 13901; Jul 31, 20 at 3:39 am
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Old Jul 31, 20, 3:34 am
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A318 and therefore LCY-JFK gone.
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