International Airlines Group, the owner of British Airways, Iberia, Aer Lingus and Vueling, achieved passenger capacity of just 21.9 per cent of 2019 levels in the second quarter of this year, up marginally from 19.6 per cent in Q1, and posted a half-year loss of more than €2 billion.
The group expects to operate around 45 per cent of 2019 passenger capacity in the peak third quarter, but says it will take “until at least 2023 for passenger demand to reach the levels of 2019” and is therefore “actively involved in restructuring its cost base”.
In its half-year results published today, the group says the “restricted nature” of England’s green list “severely limited the recovery in capacity expected on the lifting of lockdown restrictions”.
Luis Gallego, IAG Chief Executive Officer, said: "In the short term, our focus is on ensuring our operational readiness, so we have the flexibility to capitalise on an environment where there's evidence of widespread pent-up demand when travel restrictions are lifted.
"This is reflected in Iberia's and Vueling's results. They were the best performers within the group in the second quarter, reflecting stronger Latin American and Spanish domestic markets driven by fewer travel restrictions. We know that recovery will be uneven, but we're ready to take advantage of a surge in air travel demand in line with increasing vaccination rates.”
He continued: "We welcome the recent announcement that fully vaccinated travellers from amber countries in the EU and the US will no longer have to quarantine upon arrival in the UK. We see this as an important first step in fully re-opening the transatlantic travel corridor.”
The report also commented on the European Commission’s decision to investigate Iberia’s proposed acquisition of Air Europa under the EU Merger Regulation: “IAG believes that the proposed deal is pro-competitive and will benefit customers, employees and the Spanish economy and connectivity. It will strengthen Madrid's hub competitiveness on a global stage and enable it to compete against other major European hubs.”
In a separate announcement, British Airways said bookings between the US, EU and UK had "surged by 95 per cent" within hours of a government announcement revealing fully vaccinated US citizens and residents of many European countries are exempt from quarantine upon arrival in England from Monday August 2.
The airline is adding extra seats to the UK from US cities such as New York, Los Angeles and Chicago and European cities including Berlin, Geneva and Hamburg.