Worldwide Airways Group has reported a lack of €7.four billion for monetary 2020 because the Covid-19 pandemic wrought havoc within the aviation sector.
The losses embrace prices for distinctive gadgets referring to 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.eight billion for the 12 months to December.
Luis Gallego, IAG chief government, mentioned: “Our outcomes mirror the intense influence that Covid-19 has had on our enterprise.
“We have now taken efficient motion to protect money, increase liquidity and scale back our value base.”
Regardless of this disaster, IAG mentioned its liquidity remained robust.
On the finish of December, the group had €10.three billion available, together with a profitable €2.7 billion capital enhance and £2 billion mortgage dedication from UKEF.
That is increased than at first of the pandemic, the group mentioned.
“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,” mentioned 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 evaluation”.
With persevering with uncertainty round Covid-19, IAG mentioned it was at present unable to supply steerage to its efficiency in 2021.
Additionally as we speak, IAG mentioned Lynne Embleton had been appointed chief government of Aer Lingus.