British Airways parent sees hope after $9b loss

Bloomberg

British Airways parent IAG SA said there are grounds for optimism about air travel this summer, after posting its first annual loss in almost a decade.
The airline group reported an operating loss of 7.43 billion euros ($9 billion) in 2020, according to a statement. While Chief Executive Officer Luis Gallego expressed growing confidence that a recovery will take shape, IAG said it can’t provide an outlook for the current year as the coronavirus pandemic continues to batter air travel.
Carriers specialising in long-haul routes have suffered the worst of the downturn,
with the International Air Transport Association predicting some inter-continental markets could take years to revive. Airlines such as London-based IAG are counting on so-called Covid passports to help spur a quicker rebound as vaccine rollouts accelerate in countries including the UK.
“We have seen a big increase in flight and holiday bookings for the summer following the UK government announcement,” Gallego said on a media call. “Vaccination development, international common standards and digital health passes will be key.”
IAG’s operating loss included exceptional charges of 3 billion euros against plane retirements, restructuring and fuel-hedging measures.
The company has had to cut jobs, borrow money and sell stock to stay afloat, with BA particularly hard because of its reliance on a trans-Atlantic market that’s still virtually closed.
The carrier group had 10.3 billion euros in liquidity at the start of 2021, it said in a presentation.
IAG won’t need any additional funding and will be focused on how to capture demand as it returns, Chief
Financial Officer Steve Gunning said.