IAG loses 6,923 million in 2020.

IAG, parent company of Iberia, British Airways, Vueling and Aer Lingus, posted a loss of 6,923 million euros in 2020, compared to the net profit of 1,715 million euros obtained a year earlier, due to the impact of Covid-19 and the travel restrictions imposed due to the pandemic, as reported by the company this Friday to the National Securities Market Commission (CNMV).

See also: IAG finally seals purchase of Air Europa for 500 million.

The group has recognized an exceptional pre-tax charge in 2020 of 3,061 million euros related to the suspension of fuel and currency hedge accounting, fleet impairment and restructuring costs.

Total revenue for the ‘holding company’ came in at €7,806 million, down 69.4% compared to 2019, while expenses were down 33.5% to €15,232 million. Operating income was negative €7,426 million. Meanwhile, gross operating profit (Ebitda) reached negative €2,266 million.

See also: Air transport industry delays its recovery until 2022.

By airlines, British Airways recorded a 70% drop in revenues, to 3,947 million euros, while Iberia suffered a 60% drop, to 2,259 million euros. More marked were the declines at Vueling (-77%) and Aer Lingus (-78%), which posted revenues of EUR 574 million and EUR 467 million, respectively.

Passenger capacity in the fourth quarter was 26.6% of the 2019 total and for the full year represented 33.5% of the 2019 total and continues to be negatively impacted by the Covid-19 pandemic, as well as government restrictions and quarantine measures.

Current passenger capacity plans for the first quarter of this year are about 20% of 2019 capacity, but remain uncertain and subject to revision.

“The aviation industry supports the willingness of governments to place public health as a top priority. A clear roadmap regarding the lifting of the current restrictions will be needed to get people flying again when the time is right,” said IAG CEO Luis Gallego.

“We know that there is pent-up demand for travel and that people want to fly. Vaccinations are progressing well and global infections are going in the right direction. We are calling for common international standards on testing and the implementation of digital health cards to reopen our skies safely,” he added.

By EuropaPress

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