The International Airlines Group, which includes British Airways, Iberia and Aer Lingus, said a “significant recovery is underway” in its Q3 financial results published today.
Although operating losses, at €452 million in Q3, have halved compared to previous quarters, the group is heading towards a €3 billion loss for 2021 overall.
Passenger capacity in Q3 was 43.4 per cent of 2019, up from 21.9 per cent in Q2, and the group expects to operate around 60 per cent of pre-Covid capacity in Q4. That would result in 2021 capacity of 37 per cent of 2019 levels.
The group has been buoyed by the reopening of the US to fully vaccinated passengers from the UK and much of Europe from Monday 8 November.
“The full reopening of the transatlantic travel corridor from Monday is a pivotal moment for our industry,” said Luis Gallego, IAG chief executive officer. “British Airways is serving more US destinations than any transatlantic carrier and we’re delighted that we can get our customers flying again.”
He continued: “Longhaul traffic has been a significant driver of revenue, with bookings recovering faster than shorthaul 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.”
Gallego said the group is preparing to increase capacity and ensure it is set up to return to profitability in 2022, as well as creating new opportunities for growth.
“This includes initiatives such as our new shorthaul 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,” said Gallego.
Iberia and Vueling continue to be the group’s best performers, with the former returning to profitability.