The International Consolidated Airlines Group (IAG) has reported a first quarter 2022 net loss of €787 million or (€0.159) per share. The Group’s first quarter revenue increased year-over-year to €3.44 billion versus €968 million in the same period last year.
On Friday (May 6, 2022), the International Consolidated Airlines Group (IAG) reported their first quarter 2022 financial results for the period ending March 31, 2022. The Group reported a first quarter net loss of €787 million or (€0.159) per share on revenue of €3.44 billion compared to revenue of €968 million for Q1 2021. At March 31, 2022, IAG had cash totaling €8.18 billion, an increase of €241 million compared to the end of the fourth quarter of 2021, as well as committed and undrawn general and aircraft financing facilities of €4.18 billion. The company’s net debt at the end of the quarter was €11.59 billion, down €74 million from December 31, 2022.
In Friday’s announcment, IAG’s Chief Executive Officer, Luis Gallego, said,
“Demand is recovering strongly in line with our previous expectations. We expect to be profitable from the second quarter onwards and for the full year. Premium leisure continues to be the strongest performing segment and business travel is at its highest level since the start of the pandemic. As a result of the increasing demand, forward bookings remain encouraging. We expect to achieve 80% of 2019 capacity in the second quarter and 85% in the third quarter. North Atlantic capacity will be close to fully restored in the third quarter. The Group's operating loss reduced significantly in the first quarter compared to last year, with our losses reflecting normal seasonality, the impact of Omicron and costs associated with ramping up operations.
“Globally the travel industry is facing challenges as a result of the biggest scaling up in operations in history and British Airways is no exception. The welcome removal of UK's stringent travel restrictions, combined with strong pent-up demand, have contributed to a steep ramp up in capacity. The airline’s focus at the moment is on improving operations and customer experience and enhancing operational resilience. We're proud that our leadership in tackling climate change continues to be recognised at a global level. The Transition Pathway Initiative (TPI) has awarded us its highest ranking for carbon performance. It rated IAG in the top 3% of almost 500 businesses for its alignment to scientific targets.”
IAG’s first quarter cargo revenue increased year-over-year by 24.4 percent to €432 million, despite the operation of only 287 cargo flights operated during the quarter, down from 1,306 in Q1 2021, due to the increase in passenger capacity operated. The company’s other revenue reached 88 percent of Q1 2019 levels to €348 million, attributable to recovery in the Group’s non-airline businesses including BA Holidays, Iberia’s third party handling business and IAG Loyalty.
During the first quarter the Group took delivery of nine aircraft including three Airbus A350-900s, three Airbus A350-1000s, and three Airbus A320neos, of which one A350-900 and one A350-1000 were financed during the first quarter. Financing for five aircraft for Iberia (two A350-900s and three A320neos) was agreed upon on April 12, 2022 and will be drawn down during the second quarter, while the remaining two aircraft will be financed before the end of the year.
Source: International Consolidated Airlines Group/RNS Number: 5858K/LEI: