Intermoney | The lack of personnel and strikes are leading to the suspension of over 40,000 operations out of those forecast for Europe over the summer months (25,000 alone between British Airways, Easyjet and Lufthansa). They are also provoking innumerable delays and problems with luggage. The fast increase in demand has been mixed with both the airlines and the airports’ difficulties’ in recovering the volume of their workforces which decreased during the pandemic. In the case of London-Heathrow or Amsterdam-Schipol, there have been demands for the airlines to cut their activity to avoid collapse.
Valuation: Negative news for IAG, which last week announced a bigger reduction in its capacity until October with respect to 2019 to 13% from 11%. The estimates for a record summer may have to be revised if these cancellations continue. Amid a situation where the hike in fuel prices is seriously hurting margins, this reduction in capacity complicates it even further. On the upside, British Airways has reached an agreement with its ground staff to avoid the strike which was threatening the company and could have made the situation even worse.
