British Airways owner IAG slumped to a €7.4 billion ($8.9bn) pre-tax loss in 2020 after the Covid-19 pandemic paralysed air travel across the globe with the company offering no profit outlook for 2021.
The huge operating loss, which included €3bn in early flight retirements, restructuring charges and fuel and currency hedges, followed a €2.6bn profit in 2019.
Passenger revenues slumped 76 per cent to €5.5bn, with IAG chief executive Luis Gallego calling for digital health passes to reopen routes.
Mr Gallego said the results, representing IAG’s first annual loss in almost a decade, "reflect the serious impact that Covid-19 has had on our business".
“The group continues to reduce its cost base and increase the proportion of variable costs to better match market demand," he said.
"We know there is pent-up demand for travel and people want to fly. Vaccinations are progressing well and global infections are going in the right direction. We're calling for international common testing standards and the introduction of digital health passes to reopen our skies safely."
IAG, whose portfolio includes Spanish carrier Iberia and Ireland's Aer Lingus, is undergoing a painful cost-cutting drive that includes cutting thousands of jobs.
The company said it has already axed the "majority" of 10,000 jobs – a quarter of the carrier's workforce – at British Airways, as well as 500 positions at Aer Lingus.
The global aviation industry came to a standstill at the start of pandemic last year with airlines forced to suspend flights, cut jobs and seek government aid.
“The past 12 months has been perhaps the most difficult and testing period in the history of aviation,” said Adam Vettese, analyst at multi-asset investment platform eToro.
“British Airways parent IAG’s results are a testament to that, with revenue plunging, passenger numbers a fraction of what they were and debt spiralling.”
IAG liquidity stood at €10.3bn, including a €2.7bn capital increase and a €2bn loan commitment agreed in December, while non-fuel costs sank 37.1 per cent last year.
“We have taken effective action to preserve cash, boost liquidity and reduce our cost base. Despite this crisis, our liquidity remains strong," Mr Gallego said.
Earlier this week, BA boosted its cash reserves by delaying £450 million ($627m) in pension payments in a bid to conserve funds.
IAG said BA would draw down a £2bn government-backed loan agreement with a syndicate of banks by the end of this month. The five-year plan unveiled in December would be partially guaranteed by government agency UK Export Finance.
British carriers received some respite earlier this week when Prime Minister Boris Johnson said international travel could reopen in mid-May.
Due to uncertainty over the pandemic, IAG did not provide any profit guidance for 2021, highlighting the challenges facing Mr Gallego and aviation industry chiefs who are pinning their hopes on a rapid vaccination drive.
“The aviation industry stands with governments in putting public health at the top of the agenda. Getting people travelling again will require a clear roadmap for unwinding current restrictions when the time is right,” Mr Gallego said.
The outlook for 2021 has deteriorated since December after several governments, including the UK's, imposed stricter travel restrictions to curb new variants of the Covid-19 virus.
Airlines' cash burn is expected to increase to $75bn-$95bn this year, the International Air Transport Association said, up from the $48bn projected in December.
The industry, which was expected to break even by the fourth quarter of 2021, is now on track to continue burning through its cash reserves until the end of the year, Iata said.
With the pace of vaccinations picking up in many countries, Mr Vettese said there is talk of a tentative reopening of the skies for those who have had a Covid-19 shot.
“However, even if flights return by summer, as is hoped, IAG and the wider airline industry will be wearing the scars of this pandemic for years to come," he said.
UAE currency: the story behind the money in your pockets
The biog
Age: 35
Inspiration: Wife and kids
Favourite book: Changes all the time but my new favourite is Thinking, Fast and Slow by Daniel Kahneman
Best Travel Destination: Bora Bora , French Polynesia
Favourite run: Jabel Hafeet, I also enjoy running the 30km loop in Al Wathba cycling track
UAE currency: the story behind the money in your pockets
The%20specs
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What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
U19 World Cup in South Africa
Group A: India, Japan, New Zealand, Sri Lanka
Group B: Australia, England, Nigeria, West Indies
Group C: Bangladesh, Pakistan, Scotland, Zimbabwe
Group D: Afghanistan, Canada, South Africa, UAE
UAE fixtures
Saturday, January 18, v Canada
Wednesday, January 22, v Afghanistan
Saturday, January 25, v South Africa
UAE squad
Aryan Lakra (captain), Vriitya Aravind, Deshan Chethyia, Mohammed Farazuddin, Jonathan Figy, Osama Hassan, Karthik Meiyappan, Rishabh Mukherjee, Ali Naseer, Wasi Shah, Alishan Sharafu, Sanchit Sharma, Kai Smith, Akasha Tahir, Ansh Tandon
Results
2pm Handicap (PA) Dh85,000 1,800m
Winner AF Al Baher, Tadhg O’Shea (jockey), Ernst Oertel (trainer).
2.30pm Maiden (TB) Dh75,000 1,400m
Winner Alla Mahlak, Fabrice Veron, Rashed Bouresly.
3pm Handicap (TB) Dh80,000 1,400m
Winner Davy Lamp, Adrie de Vries, Rashed Bouresly.
3.30pm Handicap (TB) Dh105,000 1,400m
Winner Ode To Autumn, Richard Mullen, Satish Seemar.
4pm Handicap (TB) Dh80,000 1,950m
Winner Arch Gold, Pat Dobbs, Doug Watson.
4.30pm Maiden (TB) Dh75,000 1,800m
Winner Meqdam, Pat Dobbs, Doug Watson.
5pm Handicap (TB) Dh90,000 1,800m
Winner Native Appeal, Sam Hitchcott, Doug Watson.
5.30pm Maiden (TB) Dh75,000 1,400m
Winner Amani Pico, Tadhg O’Shea, Satish Seemar
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
ADCC AFC Women’s Champions League Group A fixtures
October 3: v Wuhan Jiangda Women’s FC
October 6: v Hyundai Steel Red Angels Women’s FC
October 9: v Sabah FA
India cancels school-leaving examinations
Mane points for safe home colouring
- Natural and grey hair takes colour differently than chemically treated hair
- Taking hair from a dark to a light colour should involve a slow transition through warmer stages of colour
- When choosing a colour (especially a lighter tone), allow for a natural lift of warmth
- Most modern hair colours are technique-based, in that they require a confident hand and taught skills
- If you decide to be brave and go for it, seek professional advice and use a semi-permanent colour
MATCH INFO
Manchester City 6 Huddersfield Town 1
Man City: Agüero (25', 35', 75'), Jesus (31'), Silva (48'), Kongolo (84' og)
Huddersfield: Stankovic (43')
FIXTURES
Thu Mar 15 – West Indies v Afghanistan, UAE v Scotland
Fri Mar 16 – Ireland v Zimbabwe
Sun Mar 18 – Ireland v Scotland
Mon Mar 19 – West Indies v Zimbabwe
Tue Mar 20 – UAE v Afghanistan
Wed Mar 21 – West Indies v Scotland
Thu Mar 22 – UAE v Zimbabwe
Fri Mar 23 – Ireland v Afghanistan
The top two teams qualify for the World Cup
Classification matches
The top-placed side out of Papua New Guinea, Hong Kong or Nepal will be granted one-day international status. UAE and Scotland have already won ODI status, having qualified for the Super Six.
Thu Mar 15 – Netherlands v Hong Kong, PNG v Nepal
Sat Mar 17 – 7th-8th place playoff, 9th-10th place playoff
CONFIRMED%20LINE-UP
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
The%20Genius%20of%20Their%20Age
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UAE cricketers abroad
Sid Jhurani is not the first cricketer from the UAE to go to the UK to try his luck.
Rameez Shahzad Played alongside Ben Stokes and Liam Plunkett in Durham while he was studying there. He also played club cricket as an overseas professional, but his time in the UK stunted his UAE career. The batsman went a decade without playing for the national team.
Yodhin Punja The seam bowler was named in the UAE’s extended World Cup squad in 2015 despite being just 15 at the time. He made his senior UAE debut aged 16, and subsequently took up a scholarship at Claremont High School in the south of England.
