BA owner IAG banks on reopening of transatlantic routes to revive business

BA owner IAG is banking on the reopening of transatlantic travel to revive its business after warning it will lose another E3b this year. The group, which owns airlines including Iberia, Aer Lingus and Vueling, has racked up huge losses over the past 18 months while it has been shut out of its most lucrative north Atlantic market, in effect closed since early 2020. But Luis Gallego, IAG’s CE, said Monday’s reopening of the US border to foreign nationals represents “a pivotal moment for our industry”. IAG’s airlines plan to increase their flight schedules to 60% of normal levels this quarter in response, up from the 40% flown over the summer, which are typically the industry’s busiest months. Looking further ahead, Gallego expects capacity on the north Atlantic routes to reach 100% of pre-pandemic levels by next summer, which he said should allow IAG to finally return to profit. Transatlantic bookings on BA have risen 167% since the US announced the reopening of its borders in September, with planes next week expected to be nearly full as people take advantage of the easing in restrictions. The airline’s boss Sean Doyle said the “very encouraging” bookings included early signs of a rebound in high-yielding business travellers, which are crucial to the business. “We are seeing a strong recovery as markets open up,” Doyle said. IAG has grown into an aviation powerhouse since it was formed through the merger of BA and Iberia a decade ago, and has built its business around its lucrative long-haul routes.<br/>