August 09, 2024 07:02 GMT
IAG (IAGLN; Baa3, BBB- Pos) Halts flights to Beijing
TRANSPORTATION
Its pausing London to Beijing flights from October 26th. It's likely tied to it avoiding Russian airspace which adds flight time, fuel costs and higher ticket prices which is likely drawing passengers towards Chinese carriers (that do not).
- It's current exposure to the region is small (APAC 4%). Adding to that Asia is having one of the worst yield performances (-10%) and it's being tied to capacity growth there.
- IAG seemed to prefer South Asia (11% of current capacity) and as we said on 1H results its tilt to NA has benefited it thus far.
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