The group of Iberia and British Airways registered a 27% drop in the first quarter and is starting to recover from the pandemic
The end of travel restrictions due to the pandemic has allowed the IAG group to cut its losses in the first quarter of the year, although it is still not out of the red. The ‘holding company’, which includes Iberia, British Airways, Vueling and Aer Lingus, posted an after-tax loss of EUR 787 million from January to March, a decrease of 26.7% compared to the same period of the previous year, as seen this Friday was reported by the company to the CNMV.
Revenues improved significantly, from 968 million euros last year to 3,435 million euros in this first quarter. Similarly, the result after tax before exceptional items was negative at 810 million euros, compared to a loss of 1,131 million a year earlier. IAG’s operating losses amounted to €731 million in the first quarter, 32.1% lower than in 2021.
“Demand is recovering strongly, in line with our forecasts. We hope to restore profitability from the second quarter and into the full year,” said IAG’s CEO, Luis Gallego, assuring that the premium holiday segment remains the segment showing the best evolution. Moreover, he believed that as a result of this increase in demand reserves continue to grow: “We hope to reach 80% of 2019 capacity in Q2 and 85% in Q3. In the North Atlantic, almost 100% of capacity is expected in Q3 capacity will be restored,” he added.
Despite the impact of omicrom and the costs associated with the increase in business, Gallego said losses in the first quarter had decreased “significantly” compared to the previous year, which “reflects the company’s seasonality.” Therefore, IAG expects operating income to be positive from the second quarter, meaning both operating income and net cash flow from operating activities will be positive for the year.
Source: La Verdad
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