June 13, 2021

IAG (Iberia) loses 1,067 million euros until March, 36% less



The International Consolidated Airlines Group (IAG) reduces losses but continues to be weighed down by the coronavirus crisis and mobility restrictions, as well as quarantine measures imposed by almost all the countries in which it operates. The airline ‘holding’, which includes companies such as Iberia or British Airways (BA), lost 1,067 million euros during the first quarter of this year, that is, 36.6% less than the 1,687 million euros for the same period of the previous year. However, total revenue fell far behind at € 968 million compared to € 4,585 million recorded in March 2020.

Losses after tax and exceptional items for the quarter were 1,067 million euros compared to 1,683 million in 2020. On the other hand, the negative result after tax before exceptional items was 1,124 million euros compared to 556 million euros in previous exercise.

In a statement sent to the CNMV, IAG reports that passenger transport capacity in the first quarter was 19.6% compared to 2019, the year before the COVID pandemic broke out. Likewise, the airline group adds that second quarter passenger transport capacity will increase to 25%, but it points out that current plans are still subject to prevailing uncertainty and that, consequently, they are subject to review and change.

Unrestricted corridors

«We are taking all the necessary measures to guarantee the financial health of our business in the long term, including a successful capital increase of € 2.7 billion carried out the previous year, and we continue to focus on reducing our cost base and increasing efficiency ”, assures the CEO of IAG, Luis Gallego, in statements included in the note sent to the regulator.

Gallego also highlights that they are prepared for value and, at the same time, claims the ‘necessary’ action of governments through four key measures. Among them, it is committed to implementing unrestricted travel corridors between countries with successful vaccination programs and effective testing protocols, such as the United Kingdom and the United States.

The CEO of IAG also called for affordable and simple tests to replace quarantines and other more expensive tests as well as digital certificates for documentation of vaccination tests on international travel. Finally, Gallego requested that the borders be staffed with enough personnel and that they use contactless technology, including e-gates, to guarantee a safe flow of people and a smooth travel experience.

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