International Airlines Group S.A (IAG), the parent company of carriers Aer Lingus, British Airways, IAG Cargo, Iberia, and Vueling, the LEVEL brand and Avios, the IAG reward program, has released consolidated results for the six months up to June 30, 2021. Passenger capacity in Q2 was 21.9% of 2019 and continues to be adversely affected by the COVID-19 pandemic together with government restrictions and quarantine requirements. There was strong liquidity of €10.2 billion at the end of Q2, driven by successful conclusion of financing initiatives since the start of the year, together with cost actions and U.K. pension contribution deferral.
Current passenger capacity plans for Q3 are for around 45% of 2019 capacity, but remain uncertain and subject to ongoing review. There was reported operating loss for Q2 of €967 million (2020 restated: operating loss €2,182 million) and operating loss before exceptional items €1,045 million (2020 restated: operating loss before exceptional items €1,370 million). Reported operating loss for the half year was €2,035 million (2020 restated: operating loss €4,052 million), and operating loss before exceptional items €2,180 million (2020 restated: operating loss before exceptional items €1,915 million). Exceptional credit before tax in the half year of €145 million on discontinuance of fuel and foreign exchange hedge accounting (2020: exceptional charge before tax of €2,137 million on discontinuance of fuel and foreign exchange hedge accounting and impairment of fleet). Loss after tax and exceptional items for the half year €2,048 million (2020 restated: loss €3,813 million) and loss after tax before exceptional items: €2,169 million (2020 restated: loss €1,972 million). Cash of €7.7 billion at June 30, 2021 up €1.7 billion on December 31, 2020. Committed and undrawn general and aircraft facilities of €2.5 billion, bringing total liquidity to €10.2 billion, with pro forma liquidity including the British Airways sustainability linked EETC financing executed in July at €10.8 billion.
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 capitalize 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. 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 U.K. We see this as an important first step in fully re-opening the transatlantic travel corridor.” (€1.00 = US1.18 at time of publication.)
