Worldwide Airways Group has reported a lack of €7.4 billion for monetary 2020 because the Covid-19 pandemic wrought havoc within the aviation sector.
The losses embody costs for distinctive gadgets regarding gas and forex hedges, early fleet retirement and restructuring prices.
The determine is compared to a revenue of €2.6 billion in 2019.
The group – which incorporates Iberia, British Airways, Aer Lingus and others – noticed income fall 69 per cent to €7.8 billion for the yr to December.
Luis Gallego, IAG chief govt, stated: “Our outcomes mirror the intense affect that Covid-19 has had on our enterprise.
“We now have taken efficient motion to protect money, enhance liquidity and scale back our value base.”
Regardless of this disaster, IAG stated its liquidity remained sturdy.
On the finish of December, the group had €10.3 billion available, together with a profitable €2.7 billion capital improve and £2 billion mortgage dedication from UKEF.
That is greater than in the beginning of the pandemic, the group stated.
“In 2020, our capability decreased by 67 per cent whereas our non-fuel prices went down 37 per cent due to the extraordinary effort throughout our enterprise,” stated Gallego.
“The group continues to cut back its value base and improve the proportion of variable prices to higher match market demand.”
Within the first quarter of 2021, IAG hopes to fly round one fifth of the capability ranges seen in 2019 – however even this stays “unsure and topic to evaluate”.
With persevering with uncertainty round Covid-19, IAG stated it was at present unable to supply steerage to its efficiency in 2021.
Additionally at present, IAG stated Lynne Embleton had been appointed chief govt of Aer Lingus.