LONDON (AP) — The parent company of British Airways reeled to a loss of 3.8 billion euros ($4.5 billion) in the first six months of the year as travel restrictions from the COVID-19 pandemic ate into the bottom line.
By way of comparison, IAG reported 806 million euros in profit in the same period a year ago. Passenger traffic dropped by 98.4% in the second quarter amid government travel restrictions.
The company announced it plans to raise 2.75 billion euros through a proposed capital increase.
Chief Executive Willie Walsh predicted that passenger levels wouldn’t return to pre-virus levels until 2023, and that it is “restructuring its cost base to reduce each airline’s size.”