BA owner IAG hit by record E7.4b loss
The owner of BA, International Airlines Group, reported a record E7.4b loss for last year, and called for the introduction of digital health passes for passengers to enable the airline industry to get back on its feet. IAG said that passenger capacity last year was only a third of 2019 and in the first quarter of this year is running at only a fifth of pre-Covid levels. The airline group reported a total annual operating loss of E7.4b, including expensive fuel and currency hedges, retiring its planes early and the costs of its 10,000 staff redundancies – a €10bn swing in a year from its E2.6b profit in 2019. “Our results reflect the serious impact that Covid-19 has had on our business,” said Luis Gallego, the chief executive of IAG. “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.” IAG’s passenger revenues plunged by 75% from E22.4b to E5.5b last year but it said its cargo business had “helped to make long-haul passenger flights viable” during the pandemic. Cargo revenues increased by almost E200m to E1.3b and IAG also operated more than 4,000 cargo-only flights during the year. The airline group said that because of the uncertainty over the impact of the pandemic on its business, it would not provide profit guidance for this year and called for an international plan to “reopen the skies”. BA has been conducting a trial for a VeriFLY digital health passport and is also in discussions with the International Air Transport Association on its Travel Pass, which it hopes to roll out worldwide after trials in Australia and New Zealand. Sean Doyle, the chief executive of BA, said: “We’re keen to work with the government to set a policy framework to verify whatever is required to travel – proof of vaccinations or a negative test. “With the momentum we see on bookings for the summer and the demand out there, this could be a very important part of opening up this summer.”<br/>
https://portal.staralliance.com/cms/news/hot-topics/2021-03-01/oneworld/ba-owner-iag-hit-by-record-e7-4b-loss
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BA owner IAG hit by record E7.4b loss
The owner of BA, International Airlines Group, reported a record E7.4b loss for last year, and called for the introduction of digital health passes for passengers to enable the airline industry to get back on its feet. IAG said that passenger capacity last year was only a third of 2019 and in the first quarter of this year is running at only a fifth of pre-Covid levels. The airline group reported a total annual operating loss of E7.4b, including expensive fuel and currency hedges, retiring its planes early and the costs of its 10,000 staff redundancies – a €10bn swing in a year from its E2.6b profit in 2019. “Our results reflect the serious impact that Covid-19 has had on our business,” said Luis Gallego, the chief executive of IAG. “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.” IAG’s passenger revenues plunged by 75% from E22.4b to E5.5b last year but it said its cargo business had “helped to make long-haul passenger flights viable” during the pandemic. Cargo revenues increased by almost E200m to E1.3b and IAG also operated more than 4,000 cargo-only flights during the year. The airline group said that because of the uncertainty over the impact of the pandemic on its business, it would not provide profit guidance for this year and called for an international plan to “reopen the skies”. BA has been conducting a trial for a VeriFLY digital health passport and is also in discussions with the International Air Transport Association on its Travel Pass, which it hopes to roll out worldwide after trials in Australia and New Zealand. Sean Doyle, the chief executive of BA, said: “We’re keen to work with the government to set a policy framework to verify whatever is required to travel – proof of vaccinations or a negative test. “With the momentum we see on bookings for the summer and the demand out there, this could be a very important part of opening up this summer.”<br/>
