{"id":26923,"date":"2022-07-29T11:34:00","date_gmt":"2022-07-29T15:34:00","guid":{"rendered":"http:\/\/irishexaminerusa.com\/wp\/?p=26923"},"modified":"2022-08-01T11:36:51","modified_gmt":"2022-08-01T15:36:51","slug":"iag-returns-to-profit-for-first-time-since-the-start-of-the-pandemic","status":"publish","type":"post","link":"https:\/\/irishexaminerusa.com\/wp\/?p=26923","title":{"rendered":"IAG Returns To Profit For First Time Since The Start Of The Pandemic"},"content":{"rendered":"\n
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International Consolidated Airlines Group said it made an operating profit of \u20ac293 million between April and June (PA Images)<\/em><\/figcaption><\/figure>\n\n\n\n

Aer Lingus and British Airways owner International Consolidated Airlines Group (IAG) has returned to profit for the first time since the start of the coronavirus pandemic.<\/p>\n\n\n\n

The group said it made an operating profit of \u20ac293 million between April and June, compared with a \u20ac967 million loss during the same period last year.<\/p>\n\n\n\n

It expects operating profit before exceptional items to be \u201cpositive\u201d for 2022 as a whole if there are \u201cno further setbacks related to Covid-19 and government-imposed restrictions or material impacts from geopolitical developments\u201d.<\/p>\n\n\n\n

IAG chief executive Luis Gallego said: \u201cIn the second quarter we returned to profit for the first time since the start of the pandemic following a strong recovery in demand across all our airlines.<\/p>\n\n\n\n

\u201cThis result supports our outlook for a full-year operating profit.<\/p>\n\n\n\n

\u201cOur performance reflected a significant increase in capacity, load factor and yield compared to the first quarter.<\/p>\n\n\n\n

\u201cPremium leisure remains strong, while business travel continues a steady recovery in all airlines.\u201d<\/p>\n\n\n\n

IAG said the \u201cchallenging operational environment at Heathrow\u201d meant British Airways\u2019 capacity was limited to 69.1 per cent of pre-pandemic levels between April and June.<\/p>\n\n\n\n

That is compared with 57.4 per cent during the previous three months.<\/p>\n\n\n\n

The airline, which has cancelled tens of thousands of flights this summer, plans to increase its capacity to around 75 per cent between July and October.<\/p>\n\n\n\n

IAG\u2019s plans for overall passenger capacity are around 80 per cent between July and October, and 85 per cent for the final quarter of the year.<\/p>\n\n\n\n

That is a reduction of five per cent for the second half of 2022 compared with previous guidance, which the group said is \u201cmainly due to the challenges at Heathrow\u201d.<\/p>\n\n\n\n

On July 12th, Heathrow introduced a cap of 100,000 daily departing passengers until September 11th due to a shortage of staff in ground handling and elsewhere, leading to more flights being cancelled.<\/p>\n\n\n\n

Mr Gallego said: \u201cOur industry continues to face historic challenges due to the unprecedented scaling up in operations, especially in the UK where the operational challenges of Heathrow Airport have been acute.<\/p>\n\n\n\n

\u201cOur airline teams remain focused on enhancing operational resilience and improving customer experience.<\/p>\n\n\n\n

\u201cI would like to thank those customers affected for their loyalty and patience and our colleagues for their hard work and commitment.<\/p>\n\n\n\n

\u201cWe will continue working with the industry to address these issues as aviation emerges from its biggest crisis ever.\u201d<\/p>\n\n\n\n

Mr Gallego told reporters that British Airways reduced its summer schedule at Heathrow as it realized its plan was \u201cgoing to be impossible because of the shortage of people there\u201d.<\/p>\n\n\n\n

He went on: \u201cWe decided to cap the capacity in order to get resilience to the operation and in order to protect our customers. I think it was the right movement.<\/p>\n\n\n\n

\u201cWe were worried because the projections of the number of people at Heathrow didn\u2019t match the projections and the demand that we were expecting.\u201d<\/p>\n\n\n\n

Asked how long he believes restrictions will last at Heathrow, Mr Gallego replied: \u201cWe hope that before the end of the year we are going to have a more stable operation.<\/p>\n\n\n\n

\u201cI think with the adjustment of capacity that all the airlines have done, we are improving the resilience of operation at the airport.<\/p>\n\n\n\n

\u201cSo I hope that if everything goes well, at the end of the year we will be in a better situation.\u201d<\/p>\n

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