Source: IAG

International Consolidated Airlines Group (IAG) today (February 26, 2021) presented Group consolidated results for the year to December 31, 2020.

COVID-19 situation and management actions:

  • Passengercapacityinquarter4was26.6percentof2019andforthefullyearwas33.5percentof2019andcontinuestobeadversely affected by the COVID-19 pandemic, together with government restrictions and quarantine requirements
  • Currentpassengercapacityplansforquarter1,2021areforaround20percentof2019capacity,butremainuncertainandsubjectto review
  • 969cargo-onlyflightsoperatedinquarter4
  • Additionalfundingof€3.4billionsecuredinquarter4,including£2.0billioncommitmentfromUKExportFinancefinalisedinFebruary

    2021 and $1.0 billion EETC for British Airways, $0.2 billion sales and leaseback transactions for Iberia and €150 million for Aer Lingus

    backed by the Ireland Strategic Investment Fund (ISIF), with €0.8 billion bridge financing facilities repaid

  • 2020capexreducedby€2.3billion,fromplansatthestartoftheyear,to€1.9billion,with€0.5billionduetosevenaircraftdeliveries

    delayed from Q4-20 into 2021; 2021 capex expected to be lower than 2020

  • BritishAirwaysreachedagreementtodefer€495millionofpensioncontributionsduebetweenSeptember2020andOctober2021
  • BritishAirwaysreachedagreementinprincipleoverrestructuringplansforcargoemployees,followingagreementwiththeothermain

    British Airways employee groups earlier in 2020

  • Groupcontinuestofocusoncostreduction,increasingthevariabilityofitscost-baseandliquidityinitiatives

    IAG period highlights on results:

    • Fourthquarteroperatingloss€1,471million(2019:operatingprofit€93million),andoperatinglossbeforeexceptionalitems€1,165million (2019: operating profit before exceptional items €765 million)
    • OperatinglossfortheyeartoDecember31,2020€7,426million(2019:operatingprofit€2,613million),andoperatinglossbefore exceptional items €4,365 million (2019: operating profit before exceptional items €3,285 million)
    • ExceptionalchargebeforetaxintheyeartoDecember31,2020of€3,061millionondiscontinuanceoffuelandforeignexchangehedge accounting, impairment of fleet and restructuring costs; exceptional charge before tax for quarter 4 €306 million
    • LossaftertaxandexceptionalitemsfortheyeartoDecember31,2020€6,923million(2019:profit€1,715million)andlossaftertaxbefore exceptional items: €4,325 million (2019: profit before exceptional items €2,387 million)
    • Cashof€5,917millionatDecember31,2020down€766milliononDecember31,2019.Committedandundrawngeneralandaircraft facilities were €2.14 billion, bringing total liquidity to €8.1 billion. Including €2.2 billion proceeds from the UK Export Finance (UKEF) gives total pro-forma liquidity of €10.3 billion.