British Airways owner logs first profit since Covid
LONDON
British Airways parent IAG said on July 29 it flew back into profit for the first time since the start of the COVID pandemic, boosted by a “strong recovery” in demand.
IAG said in a statement that it swung back to net profit of 133 million euros ($135 million) in the second quarter from a loss of 981 million euros a year earlier.
The group had already forecast a return to annual profit after Covid travel curbs were fully lifted.
The airline conglomerate slashed first-half losses to 654 million euros from two billion euros last time around.
IAG had collapsed into annual losses in 2020 and 2021 as COVID ravaged global demand for international air travel, forcing BA and its peers to slash thousands of jobs.
IAG owns various airlines that also include Ireland’s Aer Lingus and Spain’s Iberia and Vueling.
Aviation is still in recovery mode from the deadly COVID pandemic that grounded planes worldwide. Nevertheless, the outlook for the sector remains fragile due to major disruptions, notably staff shortages.
IAG is nevertheless expanding its ageing fleet with fuel-efficient aircraft, positioning itself for the recovery.
So far this year, IAG has announced the addition of 50 new Boeing 737s and 59 Airbus A320neo family aircraft.
These will help replace more than 60 percent of its short-haul fleet by 2028.
