Source: IAG

International Consolidated Airlines Group (IAG) presented Group consolidated results for the three months to March 31, 2022.

Strong customer demand is expected to drive profitability from quarter 2 onwards

  • Passenger capacity in quarter 1 was 65% of 2019 capacity, up from 58% in quarter 4, 2021, as the Group’s airlines continued to restore capacity in advance of the Summer flying programme
  • The continued easing of government-imposed travel restrictions, particularly in the UK, resulted in improved travel demand, with no noticeable impact from the war in Ukraine
  • Quarter 1 saw strong business travel recovery, with premium leisure remaining strong
  • The impact of Omicron had a negative short-term impact in January and February on the operating result, passenger bookings and cancellations
  • Following the recent lifting of travel restrictions and the steep ramp up in capacity, British Airways is focusing on improving operations and customer experience, including moderating planned capacity at Heathrow
  • Current passenger capacity plans for remainder of 2022 are for around 80% of 2019 capacity in quarter 2, 85% in quarter 3 and 90% in quarter 4, resulting in full-year capacity of around 80% of 2019, with North Atlantic close to full capacity by quarter 3

IAG results for the period:

  • Operating loss for the first quarter €731 million (2021 restated1: operating loss €1,077 million), and operating loss before exceptional items €754 million (2021 restated1: operating loss before exceptional items €1,144 million)
  • Loss after tax and exceptional items for the first quarter €787 million (2021 restated1: loss €1,074 million) and loss after tax before exceptional items €810 million (2021 restated1: loss €1,131 million)
  • Cash was €8,184 million at March 31, 2022, up €241 million on December 31, 2021, with significantly positive working capital, driven by bookings for the remainder of the year
  • Cash was impacted by the timing of aircraft financing versus deliveries, with financing for five Iberia aircraft that were delivered and paid for in quarter 1 to be drawn down in quarter 2
  • Committed and undrawn general and aircraft financing facilities increased to €4,176 million (December 31, 2021: €4,043 million), including an additional €200 million loan facility for Aer Lingus from the Ireland Strategic Investment Fund (ISIF), bringing total liquidity to €12,360 million (December 31, 2021: €11,986 million)