British Airways owner International Airlines Group aims to restore capacity to pre-pandemic levels by the end of 2023 – but warned of a “challenging environment” this summer.
IAG admitted that some of its operations “are not where we would want them to be” and this is affecting overall customer service.
“We are working in a challenging environment: French ATC strikes are affecting most of our airlines and global supply chain issues are reducing aircraft availability,” the group said.
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“British Airways is being particularly affected due to its London exposure at both Heathrow and Gatwick and complex schedule.”
The situation is being addressed by recruiting 4,000 people in the first half, with a particular focus on ground operations.
Aircraft are also being drafted in on a wet lease basis including four Finnair Airbus A320s, one Air Belgium A330 and three Avion Express A320s at Gatwick.
BA also recently opened a “larger, more modern” call centre in Delhi, with better IT and data capability.
The UK carrier is expected to return to pre-pandemic levels of “non-premium” capacity in 2024, long-haul capacity by 2025 and premium capacity by 2026, according to IAG.
IAG’s full year projection came amid “very strong” leisure travel demand as consumers prioritise holidays and visiting friends and relatives.
Reporting record first half profits, IAG disclosed that strength in the leisure sector was compensating for slower recovery in business travel across its airlines which also include Aer Lingus, Iberia, Vueling and Level.
“BA seeing strong leisure demand in all cabins but lower levels of corporate travel,” IAG said. “British Airways is continuing to focus on its traditionally strong North Atlantic markets, as well as reopening its key Asian routes.”
The group’s net profit for the six months to June 30 came in at €921 million against a loss of €654 million in the same period last year as total revenue rose year-on-year to €13.5 billion from €9.3 billion.
The group said: “We expect full year 2023 capacity to be around 97% of pre-Covid-19 levels, subject to disruption.
“Whilst there is no sign of weakness in forward bookings, we continue to be mindful of wider uncertainties that might affect the full year.
“This includes the potential impact of geopolitical and macroeconomic volatility on the price of fuel and consumer confidence, as well as the impact of external factors on the operating environment, such as strikes.”
IAG chief executive Luis Gallego said: “Our strong profits since the start of the year are helping to fund investment for our customers, and to improve our balance sheet by reducing debt.
“We are aiming to be back to pre-pandemic capacity at the end of this year.
“These results are thanks to a strong performance from all companies across the group, and we would like to thank our teams for their hard work during the year so far.
“Customer demand remains strong across the group, particularly for leisure travel, with around 80% of passenger revenue for the third quarter already booked. And our airlines have put in place plans to support operations during the busy summer period.”
His comments came as the group confirmed new long-haul aircraft for BA and Iberia.