IAG, the owner of British Airways, Iberia, Aer Lingus and Vueling is predicting that it will be 2023 before passenger traffic levels return to that of 2019.
In its quarterly presentation this morning, IAG Chief Executive Willie Walsh said “We do not expect passenger demand to recover to the level of 2019 before 2023 at the earliest. This means group-wide restructuring is essential in order to get through the crisis and preserve an adequate level of liquidity. We intend to come out of the crisis as a stronger group.”
British Airways has already announced the potential loss of 12,000 jobs almost one third of its workforce.
IAG is now planning to ask for assistance for British Airways from the UK Government’s Coronavirus Corporate Finance Facility, although the amount has not yet been disclosed. In Spain, it has already accessed funding for Iberia and Vueling.
Iberia and Vueling access over €1 billion in state-backed loans
IAG also says it will defer delivery of 68 aircraft.
On the positive side, IAG is planning a ‘meaningful return to service in July this year, although it says ‘these plans are highly uncertain and subject to the easing of lockdowns and travel restrictions.”