British Airways owner International Airlines Group trimmed summer losses as capacity started to return from the depths of the Covid crisis as it aims for a return to profit in 2022.
The airline group, which also includes Aer Lingus, Iberia and Vueling, reported a third quarter operating loss of €452 million against €1.9 billion in the same period in 2020.
IAG’s operating loss for the nine months to September 30 of €2.5 billion was more than half the €6 billion figure in 2020.
The pre-tax loss fell to €3 billion from €6.2 billion in the equivalent period last year.
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Current passenger capacity plans for the autumn quarter are for around 60% of 2019 levels, resulting in 2021 capacity at just 37% of the 2019 total.
The group expects its 2021 operating loss before exceptional items to be about €3 billion at current fuel prices and exchange rates.
Chief executive Luis Gallego said: “There’s a significant recovery underway and our teams across the group are working hard to capture every opportunity.
“We continue to capitalise on surges in bookings when travel restrictions are lifted.
“All our airlines have shown improvements with the group’s operating loss more than halved compared to previous quarters.
“In Q3, our operating cash flow was positive for the first time since the start of the pandemic and our liquidity is higher than ever, reaching €12.1 billion on a pro forma basis at the end of October.”
He described the full reopening of the transatlantic travel corridor from Monday as a “pivotal moment” for the aviation industry.
“British Airways is serving more US destinations than any transatlantic carrier and we’re delighted that we can get our customers flying again,” Gallego added.
“Long-haul traffic has been a significant driver of revenue, with bookings recovering faster than short-haul as we head into the winter.
“Premium leisure is performing strongly at both Iberia and British Airways and there are early signs of a recovery in business travel.”
Iberia and Vueling continued to be the best performers within the group in the third quarter.
Iberia returned to profitability while Vueling reached break-even at the operating level.
“Both seized opportunities to strengthen their positions on routes to Latin America and the Spanish domestic market,” Gallego said.
“In the short term, we are focused on getting ready to operate as much capacity as we can and ensuring IAG is set up to return to profitability in 2022.
“Our teams are creating opportunities and implementing initiatives to transform our business and preparing it for the future so that we emerge more competitive.
“This includes initiatives such as our new short-haul operation at Gatwick, Vueling’s expansion at Paris-Orly, Aer Lingus’ services from Manchester to the US and the Caribbean and our new maintenance model in Barcelona.
“We also remain resolute in our climate commitments. We’re transforming our business and driving change to create a truly sustainable airline industry.
“IAG has led the way by being the first airline group worldwide to commit to achieving net zero carbon emissions by 2050 and we welcome Iata’s recent announcement that the industry will join us in meeting this goal.”
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