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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 -1.25% 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 -1.63% fell 3%, travel operator TUI /zigman2/quotes/207049334/delayed UK:TUI -0.82% lost 4% and easyJet /zigman2/quotes/202825892/delayed UK:EZJ -1.46% fell 4%.

NatWest /zigman2/quotes/209265718/delayed UK:NWG -0.39% 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
167.28 p
-2.12 -1.25%
Volume: 2.62M
Jan. 31, 2023 10:01a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£8.49 billion
Rev. per Employee
£232,926
loading...
/zigman2/quotes/203646520/delayed
UK : U.K.: London
107.34 p
-1.78 -1.63%
Volume: 5.41M
Jan. 31, 2023 10:02a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£9.22 billion
Rev. per Employee
£264,977
loading...
/zigman2/quotes/207049334/delayed
UK : U.K.: London
169.55 p
-1.40 -0.82%
Volume: 449,167
Jan. 31, 2023 9:58a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.20 billion
Rev. per Employee
£229,576
loading...
/zigman2/quotes/202825892/delayed
UK : U.K.: London
491.40 p
-7.30 -1.46%
Volume: 1.23M
Jan. 31, 2023 10:01a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.83 billion
Rev. per Employee
£413,519
loading...
/zigman2/quotes/209265718/delayed
UK : U.K.: London
£ 307.40
-1.20 -0.39%
Volume: 1.57M
Jan. 31, 2023 10:02a
P/E Ratio
12.46
Dividend Yield
0.04%
Market Cap
£29.79 billion
Rev. per Employee
£258,720
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