Parent Company British Airways Reports Loss of Billions

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Aviation group IAG, owner of British Airways and Spanish Iberia, suffered a loss of more than 4 billion euros last year. And the corona crisis is not over yet, the company warns.

 

Due to the continuing uncertain situation, IAG does not dare to provide financial forecasts yet.

CEO Luis Gallego calls for an international testing policy and a clear roadmap to reduce the current corona restrictions at the right time so that more flights can be flown again. “We are calling for international common testing standards, and the introduction of digital health passes to reopen our airspace safely.”

According to experts, the tightened corona measures and travel restrictions of the past two months pose a threat to the upcoming summer season, an essential travel industry period. Some airlines will, therefore, soon need financial support again, it is feared.

There was some excellent news for UK-focused airlines recently when British Prime Minister Boris Johnson presented a plan for the gradual abolition of corona measures. This immediately resulted in a flow of bookings for airline tickets. However, relaxation around international travel is not expected before May 17, Johnson said. It is also not yet clear what this will mean for IAG’s long-haul flights.

The corona crisis has made it very difficult for the entire aviation sector. Air France-KLM suffered a loss of more than 7 billion euros last year, and it was announced last week. CEO Ben Smith spoke of the worst crisis ever for the aviation industry.

Thousands of jobs have already been cut at KLM due to the crisis. The Dutch and French governments have also made billions of euros in state aid available to help the company, but more money is likely to be needed. Discussions are still being held about this.

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