IAG said passenger capacity slumped to less than a fifth of pre-pandemic levels in the first three months of 2021, and it expects only a slight improvement in the second quarter to 25% of 2019 levels.
The airline group, which made a €1.8bn (£1.6bn) pre-tax loss in the first quarter last year, said its forecast on passenger numbers remains “uncertain and subject to review”.
Luis Gallego, the chief executive of IAG, said: “We’re doing everything in our power to emerge in a stronger competitive position. We’re absolutely confident that a safe restart to travel can happen as shown by the scientific data. We’re ready to fly but government action is needed.”
Gallego called for four measures including restriction-free travel corridors between countries, “affordable, simple and proportionate” testing to replace quarantine, “contactless” transit through airports and digital health passes and vaccine documentation.
“These measures will enable a safe reopening of our skies,” he said.
IAG cut its weekly costs to €175m a week in the first quarter and passenger revenues plunged by 88% in the first quarter to €459m. In the same period last year, passenger revenues were €3.9bn.
The company said its cargo operation enabled it to operate a “more extensive passenger long-haul network”. IAG operated 1,306 cargo-only flights in the first three months, which generated €350m in revenue, a 42% year-on-year increase and a record for the first quarter. In the final three months of last year, IAG operated 969 cargo-only flights.
“Given the uncertainty over the timing of the lifting of government travel restrictions and the continued impact and duration of Covid-19, IAG is not providing profit guidance for 2021,” the company said.
