IAG expects to restore full North Atlantic capacity

LONDON - British Airways owner IAG expects its operating results to be profitable from quarter two, "leading both operating profit and net cash flows from operating activities to be positive for the year". The company curbed its operational loss by one third to 731 million Euros in the first quarter.

IAG expects to return to profits in 2022. "Demand is recovering strongly in line with our previous expectations", IAG CEO Luis Gallego said. "We expect to be profitable from the second quarter onwards and for the full year."

Premium leisure continues to be the strongest performing segment according to Gallego while business travel is at "its highest level since the start of the pandemic".

As forward bookings remain encouraging "we expect to achieve 80 percent of 2019 capacity in the second quarter and 85 percent in the third quarter," Gallego said. "North Atlantic capacity will be close to fully restored in the third quarter."

While still steep, operating losses reduced significantly in the first quarter compared to last year. "The airline’s focus at the moment is on improving operations and customer experience and enhancing operational resilience," Gallego said.