(Alliance News) - International Consolidated Airlines Group SA on Friday unveiled plans to increase its flight capacity for the remainder of the year as it continues in its attempts to bring passenger capacity closer to pre-pandemic levels.
The airline group said passenger capacity in the second quarter was 22% of pre-virus levels. For the third quarter, its planned capacity is 45% below 2019's levels.
IAG - which owns British Airways and Aer Lingus as well as Spanish carriers Iberia and Vueling - posted a pretax loss which narrowed in the first half to EUR2.34 billion from EUR4.22 billion a year prior. In the second quarter, the carrier's loss was trimmed to EUR1.12 billion from EUR2.33 billion.
First half revenue of EUR2.21 billion was generated, down 58% annually from EUR5.29 billion. In the second quarter alone, revenue jumped 77% to EUR1.24 billion from EUR703 million.
Passenger revenue for the first half was EUR1.14 billion, down substantially from EUR4.11 billion in the prior year period only partially affected by the pandemic.
Shares were down 4.8% at 173.08 pence each in London's Friday morning trading, the second worst FTSE 100 performer. As with the previous year, IAG will not be paying an interim dividend.
Chief Executive Luis Gallego commented: "In the short-term, our focus is on ensuring our operational readiness, so we have the flexibility to capitalise on an environment where there's evidence of widespread pent-up demand when travel restrictions are lifted.
"We welcome the recent announcement that fully vaccinated travellers from amber countries in the EU and the US will no longer have to quarantine upon arrival in the UK. We see this as an important first step in fully re-opening the transatlantic travel corridor."
Looking ahead, IAG said it had strong liquidity of EUR10.2 billion at the end of the second quarter but did not provide profit guidance for 2021 due to uncertainty over the timing of government travel restrictions lifting and the continued impact of Covid-19.
By Will Paige; willpaige@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
International Airlines (IAG)
Intertek Group (ITRK)
