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IAG Posts Q2 Loss, Sees Until At Least 2023 To Reach FY19 Demand; To Raise Up To €2.75 Bln Capital

International Consolidated Airlines Group S.A. (IAG.L) reported Friday that its second-quarter loss before tax was 2.32 billion euros, compared to last year's profit of 921 million euros.

Adjusted loss before tax was 1.51 billion euros in the latest quarter.

Second-quarter operating loss was 1.37 billion euros before exceptional items, compared to last year's operating profit of 960 million euros.

Total revenue fell 89 percent to 703 million euros from 6.73 billion euros a year ago.

Passenger capacity operated in quarter fell 95.3 percent. Traffic declined 98.5 percent. Seat factor was 28.2 percent, down 56.8 percentage points.

Passenger numbers were 508 thousand, down 98.4 percent from 31.50 million a year ago.

Looking ahead, IAG expects it will take until at least 2023 for passenger demand to recover to 2019 levels and is restructuring its cost-base to reduce each airline's size, with consultations being undertaken locally as required.

Further, active discussions remain ongoing with Globalia regarding a potential restructuring of the Air Europa acquisition, taking into account the impact of the COVID-19 pandemic.

Separately, IAG said its Board of Directors has approved the succession plan for its Chairman, Antonio Vázquez. The Board has unanimously approved the appointment of independent director Javier Ferrán as his successor.

Vázquez will continue to chair the Board of Directors for the remainder of 2020 subject to his proposed re-election as director being approved by the next IAG's Annual General Shareholders Meeting.

Further, the company proposed capital increase of up to 2.75 billion euros. Qatar Airways Group, IAG's largest shareholder with 25.1 percent holding, has confirmed its support for the proposed capital increase, subject to approval at General Shareholders' Meeting in September.

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