BA-owner IAG returns to profitability after COVID-19
2022.07.29 09:50
FILE PHOTO: A British Airways passenger plane comes in to land at London Heathrow airport, following the outbreak of the coronavirus disease (COVID-19), London, Britain, May 21, 2020. REUTERS/Toby Melville/File Photo
LONDON (Reuters) – British Airways-owner IAG (LON:ICAG) on Friday returned to quarterly profitability for the first time since the outbreak of the COVID-19 pandemic, following a “significant” increase in capacity.
The company, which also owns Iberia and Aer Lingus, said its passenger capacity had hit 78% of 2019 levels in the second quarter of the year, driven by demand in Europe and to North America, and for premium travel.
The group said it expected overall passenger capacity to be around 80% of 2019 levels in the third quarter, and around 85% in the fourth, a reduction of 5% for the second half of the year compared with previous guidance due to disruption at Heathrow.
The company had targeted a return to profitability in May. However, since then BA has been hit by cancellations and delays at airports such as London’s Heathrow. It posted an operating profit for the second quarter of 293 million euros ($299.56 million), compared with an operating loss of 967 million euros in 2021.
“This result supports our outlook for a full year operating profit,” Chief Executive Luis Gallego said.
($1 = 0.9781 euros)
