The group of Iberia and British Airways registered a decrease of 27% in the first quarter and begins to recover from the pandemic
The end of travel restrictions due to the pandemic has allowed the IAG group to reduce its losses in the first quarter of the year, although it is still not out of the red. The ‘holding’ that includes Iberia, British Airways, Vueling and Aer Lingus, registered losses after taxes of 787 million euros from January to March, which represents a decrease of 26.7% compared to the same period of the previous year, as reported this Friday by the company to the CNMV.
Revenues improved markedly, from 968 million last year to 3,435 million euros in this first quarter. Thus, the result after taxes before exceptional items was also negative with 810 million euros, compared to losses of 1,131 million a year earlier. IAG’s operating losses stood at €731 million in the first quarter, 32.1% lower than in 2021.
“Demand is recovering strongly, in line with our forecasts. We hope to recover profitability from the second quarter onwards and in the full year,” said IAG’s CEO, Luis Gallego, who assures that the premium vacation segment continues to be the one that shows the best evolution. In addition, he considered that as a result of this increase in demand, reserves continue to grow: “We hope to reach 80% of 2019 capacity in the second quarter and 85% in the third. In the North Atlantic, the forecast is to recover practically 100% of the capacity in the third quarter”, he added.
Despite the impact of omicrom and the costs associated with the increase in operations, Gallego said that losses were “significantly” reduced in the first quarter compared to the previous year, which “reflects the seasonality of the business.” Therefore, IAG expects its result from operations to be positive from the second quarter, leading both operating profit and net cash flows from operating activities to be positive for the year.