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July 30, 2021, 7:58 a.m. EDT

British Airways owner IAG drops on cautious outlook

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By Steve Goldstein

Shares of British Airways owner International Airlines Group /zigman2/quotes/208070069/delayed UK:IAG -0.47% fell as much as 8% on Friday, as investors took a pessimistic position on the group’s outlook.

The operating loss of €2 billion ($2.37 billion) was hardly a surprise given the airline flew at 22% of 2019 capacity. The company said passenger traffic won’t return to pre-pandemic levels until 2023 at the earliest, as it forecast third quarter capacity at 45% of 2019 levels.

“Management’s done a terrific job making the most of the situation—operating costs have come down significantly and cargo revenue is at an all-time high. But IAG’s in the business of flying people around the world, a tricky place to be in a global pandemic,” said Laura Hoy, equity analyst at Hargreaves Lansdown.

Other companies geared to reopening also struggled, a sign of global worries around the delta variant of coronavirus. Engine maker Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR -0.43% fell 3%, travel operator TUI /zigman2/quotes/207049334/delayed UK:TUI +1.19% lost 4% and easyJet /zigman2/quotes/202825892/delayed UK:EZJ -0.56% fell 4%.

NatWest /zigman2/quotes/209265718/delayed UK:NWG -0.23% was another decliner, losing 3% even as the bank topped earnings estimates, restarted its dividend and said it would buy back £750 million of stock. Jason Napier, an analyst at UBS, pointed out the earnings beat was driven by a much larger impairment credit than expected, and that underlying income was lower.

The broader FTSE 100 slumped 0.9%, as European stock markets also declined.

/zigman2/quotes/208070069/delayed
UK : U.K.: London
131.70 p
-0.62 -0.47%
Volume: 23.87M
Dec. 3, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£6.56 billion
Rev. per Employee
£120,743
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/zigman2/quotes/203646520/delayed
UK : U.K.: London
124.90 p
-0.54 -0.43%
Volume: 19.96M
Dec. 3, 2021 4:35p
P/E Ratio
3.99
Dividend Yield
N/A
Market Cap
£10.50 billion
Rev. per Employee
£245,311
loading...
/zigman2/quotes/207049334/delayed
UK : U.K.: London
203.60 p
+2.40 +1.19%
Volume: 2.77M
Dec. 3, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.26 billion
Rev. per Employee
£144,389
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/zigman2/quotes/202825892/delayed
UK : U.K.: London
528.20 p
-3.00 -0.56%
Volume: 4.03M
Dec. 3, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£4.01 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209265718/delayed
UK : U.K.: London
£ 216.80
-0.50 -0.23%
Volume: 12.48M
Dec. 3, 2021 4:35p
P/E Ratio
10.63
Dividend Yield
0.03%
Market Cap
£24.52 billion
Rev. per Employee
£237,730
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