IAG returns to profit in the second quarter following strong recovery in demand across all airlines

IAG financial results highlights for the period:
• Operating profit for the second quarter €293 million (2021: operating loss €967 million), and operating profit before
exceptional items €287 million (2021: operating loss before exceptional items €1,045 million)
• Operating loss for the half year €438 million (2021: operating loss €2,035 million), and operating loss before exceptional
items €467 million (2021: operating loss before exceptional items €2,180 million)
• Profit after tax and exceptional items for the second quarter €133 million (2021: loss €981 million) and profit after tax
before exceptional items €127 million (2021: loss €1,045 million)
• Loss after tax and exceptional items for the half year €654 million (2021: loss €2,048 million) and loss after tax before
exceptional items €683 million (2021: loss €2,169 million)
• Strong liquidity at June 30, 2022:
• Total liquidity increased to €13,489 million (December 31, 2021: €11,986 million)
• Cash1 of €9,190 million, up €1,247 million on December 31, 2021, with significantly positive working capital, driven
principally by bookings for travel in the second half of the year
• Committed and undrawn general and aircraft financing facilities of €4,299 million (December 31, 2021: €4,043
million), including an additional €200 million loan facility for Aer Lingus from the Ireland Strategic Investment Fund
• Net debt at June 30, 2022 was down €688 million since December 31, 2021 to €10,979 million, reflecting the seasonal
benefit on cash of bookings for travel in the second half of the year
Customer demand continues to recover strongly
• Passenger capacity in quarter 2 was 78% of 2019 (Q1 guidance: c80%), up from 65% in quarter 1, driven primarily by IAG’s
key regions of European shorthaul (capacity 89% of 2019), North America (84%) and Latin America & Caribbean (81%)
• Passenger unit revenue in quarter 2 increased by 6.4% compared to 2019, helping to offset lower capacity and higher
fuel costs, driven by passenger revenue yield 10.6% higher than in 2019
• Load factor of 81.8% (3.2 points lower than in 2019, but higher than 72.2% in quarter 1)
• 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 had recovered to c.60% of 2019’s level
• In response to the challenging operational environment at Heathrow, British Airways’ capacity was limited to 69.1% in
quarter 2 (compared to 57.4% in quarter 1) and plans to increase to c.75% in quarter 3
• IAG’s overall passenger capacity plans for the remainder of 2022 are c.80% in quarter 3 and c.85% in quarter 4, a reduction
of 5% for the second half of the year compared to previous guidance, mainly due to the challenges at Heathrow; full-year
capacity is expected to be c.78% of 2019 (compared to c.80% previously), with North America close to 2019 capacity by
the end of the year
• SAF (Sustainable Aviation Fuel) purchase commitments increased to $865 million (from $400 million previously) for the
next 20 years, including a quarter of IAG’s SAF target for 2030 (10% of total fuel needs)