International Consolidated Airlines Group (IAG) today (July 29, 2022) presents its Group consolidated results for the six
months to June 30, 2022.
IAG returns to profit in the second quarter following strong recovery in demand across all airlines
IAG financial results highlights for the period:
Operating profit for the second quarter €293 million (2021: operating loss €967 million), and operating profit before exceptional items €287 million (2021: operating loss before exceptional items €1,045 million)
Operating loss for the half year €438 million (2021: operating loss €2,035 million), and operating loss before exceptional items €467 million (2021: operating loss before exceptional items €2,180 million)
Profit after tax and exceptional items for the second quarter €133 million (2021: loss €981 million) and profit after tax before exceptional items €127 million (2021: loss €1,045 million)
Loss after tax and exceptional items for the half year €654 million (2021: loss €2,048 million) and loss after tax before exceptional items €683 million (2021: loss €2,169 million)
Strong liquidity at June 30, 2022:
Total liquidity increased to €13,489 million (December 31, 2021: €11,986 million)
Cash1 of €9,190 million, up €1,247 million on December 31, 2021, with significantly positive working capital, driven
principally by bookings for travel in the second half of the year
Committed and undrawn general and aircraft financing facilities of €4,299 million (December 31, 2021: €4,043
million), including an additional €200 million loan facility for Aer Lingus from the Ireland Strategic Investment Fund
Net debt at June 30, 2022 was down €688 million since December 31, 2021 to €10,979 million, reflecting the seasonal
benefit on cash of bookings for travel in the second half of the year
Customer demand continues to recover strongly
Passenger capacity in quarter 2 was 78% of 2019 (Q1 guidance: c80%), up from 65% in quarter 1, driven primarily by IAG’s key regions of European shorthaul (capacity 89% of 2019), North America (84%) and Latin America & Caribbean (81%)
Passenger unit revenue in quarter 2 increased by 6.4% compared to 2019, helping to offset lower capacity and higher fuel costs, driven by passenger revenue yield 10.6% higher than in 2019
Load factor of 81.8% (3.2 points lower than in 2019, but higher than 72.2% in quarter 1)
By the end of quarter 2, premium leisure revenue had almost fully recovered to 2019’s level, despite capacity being
significantly lower. Business channel revenue had recovered to c.60% of 2019’s level
In response to the challenging operational environment at Heathrow, British Airways’ capacity was limited to 69.1% in
quarter 2 (compared to 57.4% in quarter 1) and plans to increase to c.75% in quarter 3
IAG’s overall passenger capacity plans for the remainder of 2022 are c.80% in quarter 3 and c.85% in quarter 4, a reduction
of 5% for the second half of the year compared to previous guidance, mainly due to the challenges at Heathrow; full-year capacity is expected to be c.78% of 2019 (compared to c.80% previously), with North America close to 2019 capacity by the end of the year
SAF (Sustainable Aviation Fuel) purchase commitments increased to $865 million (from $400 million previously) for the next 20 years, including a quarter of IAG’s SAF target for 2030 (10% of total fuel needs)
