IAG recorded almost 3,000 million euros of losses in 2021, 57.7% less than in 2020

IAG recorded almost 3,000 million euros of losses in 2021, 57.7% less than in 2020


International Consolidated Airlines Group (IAG), the Anglo-Spanish aeronautical group, which includes, among others, the Spanish airlines Iberia, Vueling and Level, recorded losses after taxes last year of 2,933 million euros, 57.7% less than the previous year, according to the consolidated results presented this Friday.

Total income last year was 8,455 million euros, which is 8.3% more than the previous year.

Current passenger capacity plans for the first quarter of 2022 are around 65% of 2019 capacity and for the year are around 85% of 2019 capacity. Omicron has affected bookings in January and February 2022, but has had a minimal impact on bookings for Easter and summer 2022.

Capex in 2022 is expected to be €3.9 billion, reflecting the need to recover pre-pandemic capacity levels, the delay in aircraft deliveries expected in 2021, and the deferral of certain pre-pandemic payments. the delivery of aircraft corresponding to previous years. 25 new aircraft are expected to be delivered in 2022.

Luis Gallego, CEO of IAG, noted: “We are confident that a strong recovery is underway. Our teams across the Group are seizing every opportunity to build our business while capitalizing on the significant increase in bookings that comes as soon as travel restrictions are lifted.”

“The extraordinary work and dedication of our people has been key to facing this crisis. In turn, we are closely monitoring recent geopolitical events in order to manage any potential impact.”

“In the fourth quarter, all of our airlines continued to show progress in their performance, optimizing their performance and further improving their operating results. Our diversified model has allowed us to take full advantage of the recovery, as the markets in which we operate were affected at different times and in different ways.”

“Iberia generated an operating profit of €82 million in the quarter by taking advantage of opportunities to strengthen its position on routes to Latin America and in the Spanish domestic market.”

“IAG Loyalty continued to be profitable and cash generating, just as it has been throughout the pandemic, demonstrating the benefits of our unique platform. The premium leisure segment has performed strongly at both British Airways and Iberia, while business travel has started to pick up, especially on transatlantic routes.”

“Before Omicron, long distance traffic had seen its highest booking activity in October and November, reaching more than 80% of 2019 levels. This was driven by the reopening of the North Atlantic corridor, the strength of the long-distance holiday markets and travelers visiting family and friends.”

“After the appearance of Omicron at the end of November, the demand for travel decreased in the short term. However, bookings have remained strong for Easter and the 2022 summer season after picking up earlier in the year. We look forward to a strong summer with IAG returning to around 85% of its 2019 capacity.”

“As we scale up operations, our customers continue to be at the center of everything we do. This means investing in the passenger experience and operational resilience to offer the best service. We know that after the worst crisis in aviation history we must do things differently. Our model allows us to take advantage of both revenue and cost synergies while maximizing efficiency, which means we are poised to return to profitability in 2022.”

“It is with great satisfaction that our work to address climate change continues to be recognized as leading the industry. For the second consecutive year, IAG was the only European airline group to receive an A- rating within the Leadership level of the Carbon Disclosure Project (CDP). This places us in the 6% of companies with the highest rating among almost 12,000 companies globally. We also received the highest score of all airlines by the Transition Pathway Initiative (TPI), which evaluates the level of progress of different companies in their transition to a low-carbon economy”, concluded Gallego.