Source: IAG

International Consolidated Airlines Group (IAG) today (February 25, 2022) presented its unaudited Group consolidated results for the year to December 31, 2021.

  • Passenger capacity in quarter 4 was 58% of 2019 capacity, up from 43% in quarter 3 and for the full year was 36% of 2019 capacity.
  • The easing of government-imposed travel restrictions as the year progressed resulted in improving travel demand, in particular followingthe opening of the US border to foreign travellers on November 8.
  • The impact of Omicron, which became apparent on November 25, had a negative short-term impact on the operating result, passengerbookings and cancellations.
  • Significantly improved operating cash flow of €1.0bn in the second half of 2021, driven by positive EBITDA in quarter 4, strong forwardbookings and favourable working capital.
  • Capex in 2021 was €0.7 billion, significantly lower than €1.3 billion previously guided and €1.7 billion expected at the start of the year, dueto the delay of Airbus and Boeing aircraft.
  • Cash of €7,943 million at December 31, 2021, up €2,026 million on December 31, 2020. Committed and undrawn general and aircraftfacilities were €4,043 million, bringing total liquidity to €11,986 million, compared to €8,059 million at December 31, 2020.
  • Proceeds from borrowings of €4.8 billion in 2021, including: £2.0 billion UK Export Finance (UKEF) guaranteed 5-year loan for BritishAirways; €1.2 billion unsecured bond issuance by IAG; €825 million convertible bond issuance by IAG; $785 million sustainability-linked EETC for British Airways, of which $150 million was drawn in 2021; €75 million loan from the Ireland Strategic Investment Fund (ISIF) by Aer Lingus and other aircraft financing.
  • In addition, the Group agreed new general facilities, which have not been drawn during 2021, including a $1.755 billion 3-year revolving credit facility available to Aer Lingus, British Airways and Iberia and a £1.0 billion UKEF guaranteed credit facility for British Airways.
  • Current passenger capacity plans for 2022 are for around 65% of 2019 capacity in quarter 1 and for around 85% of 2019 capacity for the full year. 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 re-build capacity towards pre-pandemic levels, the delay of aircraft deliveries from 2021 and certain pre-delivery payments deferred from previous years. 25 new aircraft are expected to be in delivered in 2022.IAG results for the period:
    • Statutory operating loss for the fourth quarter €278 million (2020 restated1: operating loss €1,476 million), and operating loss before exceptional items €305 million (2020 restated1: operating loss before exceptional items €1,170 million).
    • Statutory operating loss for the year to December 31, 2021 €2,765 million (2020 restated1: operating loss €7,451 million), and operating loss before exceptional items €2,970 million (2020 restated1: operating loss before exceptional items €4,390 million).
    • Loss after tax and exceptional items for the year to December 31, 2021 €2,933 million (2020 restated1: loss after tax €6,935 million) and loss after tax before exceptional items €3,038 million (2020 restated1: loss €4,337 million).