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 fees for distinctive gadgets regarding gasoline and foreign money 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 12 months to December.
Luis Gallego, IAG chief government, stated: “Our outcomes replicate the intense affect that Covid-19 has had on our enterprise.
“We now have taken efficient motion to protect money, enhance liquidity and cut 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 readily available, together with a profitable €2.7 billion capital enhance and £2 billion mortgage dedication from UKEF.
That is increased than at 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 because of the extraordinary effort throughout our enterprise,” stated Gallego.
“The group continues to scale back its value base and enhance the proportion of variable prices to raised 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 overview”.
With persevering with uncertainty round Covid-19, IAG stated it was presently unable to supply steering to its efficiency in 2021.
Additionally at present, IAG stated Lynne Embleton had been appointed chief government of Aer Lingus.