LONDON (dpa-AFX) - International Consolidated Airlines Group S.A. (IAG.L) reported Thursday first-quarter loss of 1.68 billion euros, compared to prior year's profit of 70 million euros.
Basic loss per share were 84.8 euro cents, compared to profit of 3.7 euro cents a year ago.
The latest results reflected exceptional charge of 1.33 billion euros on derecognition of fuel and foreign exchange hedges for 2020.
Adjusted loss for the quarter was 556 million euros or 28 euro cents per share.
Total revenue declined 13.4 percent to 4.59 billion euros from 5.30 billion euros last year. Passenger revenue dropped 14.5 percent to 3.95 billion euros.
The company noted that capacity operated in the quarter was down 10.5 percent.
Passenger capacity has been reduced by 94 percent from late March with most aircraft grounded.
Looking ahead, IAG expects that its operating loss before exceptional items in the second quarter will be significantly worse than the first quarter, due to the substantial decline in passenger capacity and traffic.
As announced earlier, due to the uncertainty on the impact and duration of COVID-19, IAG is not currently providing profit guidance for 2020.
IAG said it is planning a meaningful return to service in July with a planning scenario that could see an overall reduction in passenger capacity of c.50 percent in 2020, but these plans are highly uncertain and subject to the easing of lockdowns and travel restrictions
IAG does not expect the level of passenger demand in 2019 to recover before 2023. This makes further Group-wide restructuring measures essential, and as a result IAG expects to defer deliveries of 68 aircraft.
Further, as previously announced, and required by UK labour legislation, British Airways has formally notified its trade unions about a proposed restructuring and redundancy programme which is subject to consultation.
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