British Airways owner IAG on Friday said it expected to turn profitable from the second quarter after it reported narrower losses in the first three months of the year as passenger demand continued to recover from the Covid pandemic.
The company, which also owns Aer Lingus and Iberia, posted an operating loss of €731m compared with a loss of €1.07bn a year earlier.
Passenger capacity in the quarter was 65% of pre-pandemic 2019, up from 58% in the last three months of 2021.
“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,” the company said.
IAG said it expected its operating result to be profitable from quarter two, leading both operating profit and net cash flows from operating activities to be positive for the year.
“Premium leisure continues to be the strongest performing segment and business travel is at its highest level since the start of the pandemic,” said chief executive Luis Gallego.
“As a result of the increasing demand, forward bookings remain encouraging. We expect to achieve 80% of 2019 capacity in the second quarter and 85% in the third quarter. North Atlantic capacity will be close to fully restored in the third quarter.”
