IAG posts near €8bn loss
Christian Fernsby ▼ | February 26, 2021
International Consolidated Airlines (IAG) posted losses of nearly €8bn in 2020 as COVID-19 restrictions cut passenger revenues 75%.Article continues below
Topics: IAG
The airline owner said the number of passenger flights during the year dropped to a third of 2019’s total and fell again to 27% in the final quarter of the year as more pandemic restrictions were imposed.
For the current quarter, IAG said it expects to be running at 20% of 2019 passenger capacity but given the current uncertainty that estimate might change.
The one bright spot was cargo where revenues during the year rose by €200mln to €1.3bn, according to the airline owner.
Luis Gallego, chief executive, said: “Cargo helped to make long-haul passenger flights viable.
“In addition, we operated 4,003 cargo-only flights in the year,†he added.
Total revenues for the year reflected the absence of passenger flights and dropped 69% to €7.8bn which was almost matched by losses, which soared to €7.8bn and included one-off charges for fuel hedges and foreign exchange of €3bn.
At the operating level, there was a €10bn swing into a loss of €7.4bn against a profit of €2.6bn a year ago.
All of the group’s four airlines were in the red during the year with BA posting a loss of €3.9bn and Iberia €1.4bn.
British Airways has cut 10,000 jobs or a quarter of its workforce while Irish carrier Aer Lingus shed 10% of its staff.
Employee costs for the year decreased by €2.1bn, said IAG.
BA also recently deferred €495mln of pension contributions due between September 2020 and October 2021 to save cash.
IAG added it has cash of €5.9bn at the year-end and with other sources of funds including a UK export finance facility had liquidity of €10.3bn. ■ What to read next
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