International Airlines Group has published its results for the second quarter of 2022, showing an operating profit of €293 million.
The figure compares to a loss of €967 million for the same period in 2021, and follows “strong recovery in demand across all airlines” in the group.
Second quarter passenger capacity was at 78 per cent of 2019 levels, up from 65 per cent in the first quarter, and IAG said that “By the end of quarter 2, premium leisure revenue had almost fully recovered to 2019’s level, despite capacity being significantly lower”.
Business channel revenue continued to lag however, reaching 60 per cent of 2019 levels by the end of the second quarter.
The group said that its key North American market was expected to be close to 2019 capacity levels by the end of the year, with overall passenger capacity plans for the remainder of 2022 set to be around 80 per cent in quarter 3 and 85 per cent in quarter 4.
These figures are slightly down on previous guidance, “mainly due to the challenges at Heathrow”.
Earlier this month IAG member carrier British Airways announced plans to cancel a further 10,300 flights between August and October, affecting services at Heathrow, Gatwick and London City.
IAG’s chief executive officer Luis Gallego said that the second quarter result “supports our outlook for a full year operating profit”.
“Our performance reflected a significant increase in capacity, load factor and yield compared to the first quarter,” said Gallego.
“Premium leisure remains strong while business travel continues a steady recovery in all airlines.
“Iberia and Vueling were the best performing carriers within the Group. The Spanish domestic market and routes to Latin America continued to lead the recovery with demand exceeding 2019 levels last month.
“Forward bookings show sustained strength and North Atlantic demand continues to grow following the lifting of the US COVID testing requirements in June.
“Although bookings into the fourth quarter are seasonally low at this time of year, we are seeing no signs of any weakness in demand.
“Our 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. Our airline teams remain focused on enhancing operational resilience and improving customer experience.
“I would like to thank those customers affected for their loyalty and patience and our colleagues for their hard work and commitment. We will continue working with the industry to address these issues as aviation emerges from its biggest crisis ever.”