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New IAG boss warns of more cuts as COVID crisis drags on

“What we see is where we have lockdown, we have a direct impact in the number of bookings and revenue intake,” Gallego said.

Air France-KLM also warned of a further collapse in traffic due to the lockdowns as it reported a 1.05 billion euro loss on Friday.

Shares in IAG, which have lost 78% of their value this year, were up 1% at 92 pence at 0915 GMT.

Gallego said that where routes opened IAG saw pent up demand for travel and it continued to work with UK and U.S. authorities on a plan to allow testing to replace quarantine between London and New York.

The CEO took over from Willie Walsh in September after the company secured shareholder backing for a 2.74 billion euro capital hike to boost its finances.

Bernstein analyst Daniel Roeska said more action on costs was needed.

“Management will need to significantly lower monthly cash burn to avoid significantly depleting resources by next summer,” he said.

IAG, which also owns Iberia, Aer Lingus and Vueling, was publishing further details on its third quarter after it announced a worse than expected quarterly loss of 1.3 billion euros last week.

It said the total operating loss for the quarter was 1.9 billion euros, including exceptional items relating to fuel hedges and restructuring costs at British Airways (BA) and Aer Lingus. Staff numbers have already been cut by 10,000 at the two airlines, with most of the reductions at BA.

($1 = 0.8461 euros) (Reporting by Sarah Young; editing by Kate Holton and Mark Potter)

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