British Airways Owner IAG Hit by Massive Losses Due to Pandemic

International Airlines Group ( IAG), the owner of British Airlines, has been hit by huge losses in 2020 due to the collapse of the aviation industry during the coronavirus pandemic.

Last year, IAG's total operating losses including exceptional items amounted to 7.4 billion euros (8.9 billion dollars), according to a statement published on Friday.

IAG booked 6.9 billion euros in losses after tax and exceptional items.

In 2019, the company had made a profit of 1.7 billion euros.

IAG, which also owns Iberia, Vueling, Aer Lingus and Level, transported 31.3 million passengers in 2020, only a quarter of the people it carried in 2019.

Revenue dropped by 69 per cent to 7.8 billion euros last year.

IAG's new head Luis Gallego put his hopes on vaccines and declining infection numbers for long-haul travel to start again.

"We're calling for international common testing standards and the introduction of digital health passes to reopen our skies safely," said Gallego, who took over from long-time boss Willie Walsh in the midst of the pandemic.

To weather the crisis, IAG is severely cutting costs and has secured billions in credit from investors and in subsidies. This amounted to a liquidity of 10.3 billion euros at the turn of the year - more than before the pandemic, according to the firm's statement.

Only a fraction of the usual flights are currently taking place and very little money is coming in from customers.

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