BA parent IAG confident about summer after swing to £1.1bn profit
Ilaria Grasso MacolaBritish Airways parent IAG returned to profit in the first half of the year and us looking ahead to the summer with confidence owing to strong leisure travel demand.
“Customer demand remains strong across the group, particularly for leisure travel, with around 80% of passenger revenue for the third quarter already booked,” said chief executive Luis Gallego on Friday (28 July).
The group, which also owns Iberia, Aer Lingus, Vueling and Level, on Friday reported a half-year profit before exceptional items of €1.3 billion (£1.1 billion) – up from a €446 million loss during the same period last year.
“Our strong profits since the start of the year are helping to fund investment for our customers, and to improve our balance sheet by reducing debt,” said Gallego, while adding the group was expecting to reach 97% of pre-Covid capacity by the end of the year.
Gallego said the group was focused on delivering resilient operations over the next couple of months despite an operating environment plagued by delays and cancellations.
IAG said it has recruited more than 7,000 employees over the past six months to cope with the operational challenges caused by air traffic control strikes, as well as a reduction in European airspace due to the war in Ukraine.
The company is also working on restoring capacity in some of its strongest markets, with subsidiaries such as Aer Lingus and British Airways reopening several key routes, including services to Asia.
The group added it was nevertheless mindful of “wider uncertainties” that could affect its full-year result, including the impact of geopolitical and macroeconomic pressures on consumer confidence.
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Ilaria Grasso Macola
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Place of registration: England and Wales.
Company number 08723341.
Registered address: 6th Floor, 2 London Wall Place, London EC2Y 5AU
