September 29 2022, Kimpton Fitzroy London
Friday 30 September 2022, JW Marriott Grosvenor
21 November 2022, Hilton London Metropole
International Airlines Group, the parent company of British Airways, Iberia, Aer Lingus and Vueling, on Friday reported an operating loss of €4,365 million before exceptional items compared to an operating profit of €3,285 million in 2019. Total operating losses including exceptional items including early fleet retirement plus restructuring costs amounted to €7,426 million.
During 2020, capacity decreased by 66.5 per cent while non-fuel costs went down 37.1 per cent. Passenger numbers fell by 73.6 per cent to 31.3 million.
Luis Gallego, IAG’s chief executive officer, said: “Our results reflect the serious impact that Covid-19 has had on our business. We have taken effective action to preserve cash, boost liquidity and reduce our cost base. Despite this crisis, our liquidity remains strong. At 31 December, the Group’s liquidity was €10.3 billion including a successful €2.7 billion capital increase and £2 billion loan commitment from UKEF. This is higher than at the start of the pandemic.
“The group continues to reduce its cost base and increase the proportion of variable costs to better match market demand. We’re transforming our business to ensure we emerge in a stronger competitive position.
“The aviation industry stands with governments in putting public health at the top of the agenda. Getting people travelling again will require a clear roadmap for unwinding current restrictions when the time is right.
“We know there is pent-up demand for travel and people want to fly. Vaccinations are progressing well and global infections are going in the right direction. We’re calling for international common testing standards and the introduction of digital health passes to reopen our skies safely.”
The group says it is assuming there will be a gradual easing of travel restrictions, by geographical region, based on deployment of vaccines during the year. Travel corridors between countries are assumed to be introduced from the third quarter of 2021, first in Europe then North America, with other regions following in the first half of 2022.
However, it says there are severe downside risks related to the emergence of new variants of the virus and potential resurgence of existing strains of the virus, the availability of vaccines worldwide, together with the speed at which they are deployed, the efficacy of those vaccines, and the restrictions imposed by national governments in respect of the freedom of movement and travel.