UPDATE 2-Pandemic pushes BA-owner IAG to record $9 bln loss

* Adj op loss 4.37 bln euros vs forecast 4.45 bln

* Urges common testing standards, digital health checks

* Jan-March capacity seen 20% of 2019's level

* Shares up 1%
(Adds detail, shares)

By Sarah Young

LONDON, Feb 26 (Reuters) - British Airways-owner IAG
plunged to a record 7.43 billion euro ($9 billion) loss
last year as pandemic travel paralysis saw it burn through cash,
and it warned on Friday it could not say when normal flying
conditions would return.

Tighter travel restrictions brought in by countries over the
last two months have threatened to ruin Europe's critical summer
season and leave some airlines in need of another round of
funding support, analysts warn.

IAG said uncertainty over the duration of the pandemic meant
it could not give a profit forecast, illustrating the scale of
the challenge for IAG's new boss Luis Gallego, who is six months
into the job.

"We're calling for international common testing standards
and the introduction of digital health passes to reopen our
skies safely," he said.

For now, IAG continues to focus on cutting costs to reduce
cash burn. It said it had total liquidity of 10.3 billion euros.

UK-focused airlines were buoyed earlier this week when
Britain laid out plans for travel markets to possibly reopen
from mid-May, prompting a flood of bookings, but it's unclear
whether that might include IAG's long-haul routes.

"Getting people travelling again will require a clear
roadmap for unwinding current restrictions when the time is
right," Gallego said in a statement.

IAG's operating loss before exceptional items, its preferred
measure, came in at 4.37 billion euros, slightly better than
analysts' consensus forecast for a 4.45 billion loss.

Shares in IAG were up 1% at 188 pence in early trading. They
have jumped 13% in the last five days, after Britain's
announcement on a travel restart, but over the last 12 months
have lost half their value.

For January-March, IAG said it expected to fly about 20% of
2019's capacity, down from the previous quarter's 27%.

The group, which also owns Aer Lingus, Iberia and Vueling,
has been trying to boost its finances as the crisis drags on.
Most recently, BA secured an extra 2.45 billion pounds through a
UK government-backed loan and from deferring pension
contributions.

Last October, IAG secured shareholder backing for a 2.74
billion euro capital hike, adding to savings made from over
13,000 planned job cuts.

Despite the hefty losses, IAG has stuck to its plan to buy
Spain's Air Europa, announcing in January the price tag had
halved to 500 million euros, with payment deferred for six
years.

IAG's annual loss compared with Air France-KLM's annual net
loss of 7.1 billion euros. That company has so far received 10.4
billion euros in loans and guarantees from France and the
Netherlands and is negotiating a state-backed recapitalisation.

($1 = 0.8230 euros)
(Reporting by Sarah Young. Editing by Kate Holton and Mark
Potter)