IAG trims medium-term earnings guidance amid plans to reduce capacity
StockMarketWire.com - British-airways owner International Consolidated Airlines trimmed its medium-term earnings guidance for the three years from 2020 to 2022 amid a planned reduction in capacity.
For 2020 to 2022, the company said it expected to generate earnings per share growth of 10% a year compared with 12% a year previously, reflecting the lower planned average seat per kilometer (ASK) growth.
ASK was forecast to grow at a pace of 3.4% per annum compared to around 6% per annum for 2019 to 2023 previously.
Capital expenditure was expected to average €4.7bn per annum for gross capex, compared with an average of €2.6bn per annum for net capex for 2019 to 2023 previously.
The airline owner also said it would no longer disclose monthly traffic data from January 2020, but would instead report traffic data on a quarterly basis.
In the meantime, it said passenger volumes rose 3.4% on-year in October to 10.4m, amid a 4.8% rise in revenue passenger kilometres and a 1.7 percentage point rise in its load factor to 85.0%.
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