British Airways owner IAG reported a first quarter operating loss of 1.06bn and pulled full-year guidance as the Covid pandemic continued to batter the airline industry.
The result compares with a loss of 1.86bn a year earlier. IAG said it expects to fly around 25% of 2019 capacity in the second quarter, up from 19.6% in the January – March period, but warned that those plans “remain uncertain and subject to review”.
IAG’s operating loss before exceptional items was 1.14bn, wider than the 535m posted a year ago.
IAG, which also owns Iberia and Vueling in Spain and Ireland’s Aer Lingus, cut weekly cash burn to 175m, down from guidance of 185m.
Chief executive Luis Gallego called on governments to agree travel corridors without restrictions between countries with successful vaccination rollouts and effective testing.
He also said “affordable, simple and proportionate testing” should replace quarantine and “costly, multi-layered testing” and along with better staffing at international borders and digital passes for testing and vaccination documentation to facilitate international travel.
“These measures will enable a safe re-opening of our skies. Travel underpins a global industry that supports 13 million jobs in Europe alone. There’s a high level of pent-up demand and aviation will play a critical role in reconnecting people and getting economies back up and running again,” he said.
