Airline owner IAG's Gallego expects more COVID-driven consolidation

Luis Gallego, CE of BA-owner IAG, said Wednesday he expects COVID-19 to spur further airline consolidation, eventually leaving just two or three carriers per continent. The pandemic has ravaged the industry, grounding thousands of planes worldwide and sending airlines scrambling for cash as countries shut borders and restricted travel. "We will all have a huge amount of debt after this crisis so all of us will be smaller for some time," Gallego told a virtual event on the prospects for the tourism sector. "Some won't survive: there will be opportunities for consolidation we'll participate in." Asked whether the trend would lead to two or three dominant airlines in each continent, Gallego agreed and stressed the importance of better combining different flight networks. He also said he hoped the North Atlantic corridor would open by late June, early July and said the United States should be included on Britain's green list of safe destinations due to its high vaccination rate. Gallego described IAG's joint businesses in the North Atlantic and Middle East as a key driver in its recovery and expansion, particularly the partnership with Qatar Airways.<br/>