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.
Bob Honey Who Just Do Stuff
By Sean Penn
Simon & Schuster
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
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What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
F1 drivers' standings
1. Lewis Hamilton, Mercedes 281
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 222
4. Daniel Ricciardo, Red Bull 177
5. Kimi Raikkonen, Ferrari 138
6. Max Verstappen, Red Bull 93
7. Sergio Perez, Force India 86
8. Esteban Ocon, Force India 56
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
STAR%20WARS%20JEDI%3A%20SURVIVOR
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More from Rashmee Roshan Lall
TUESDAY'S ORDER OF PLAY
Centre Court
Starting at 2pm:
Elina Svitolina (UKR) [3] v Jennifer Brady (USA)
Anastasia Pavlyuchenkova (RUS) v Belinda Bencic (SUI [4]
Not before 7pm:
Sofia Kenin (USA) [5] v Elena Rybakina (KAZ)
Maria Sakkari (GRE) v Aryna Sabalenka (BLR) [7]
Court One
Starting at midday:
Karolina Muchova (CZE) v Katerina Siniakova (CZE)
Kristina Mladenovic (FRA) v Aliaksandra Sasnovich (BLR)
Veronika Kudermetova (RUS) v Dayana Yastermska (UKR)
Petra Martic (CRO) [8] v Su-Wei Hsieh (TPE)
Sorana Cirstea (ROU) v Anett Kontaveit (EST)
Greatest Royal Rumble results
John Cena pinned Triple H in a singles match
Cedric Alexander retained the WWE Cruiserweight title against Kalisto
Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus
Jeff Hardy retained the United States title against Jinder Mahal
Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos
Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe
AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out
The Undertaker beats Rusev in a casket match
Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match
Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Company%20Profile
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UAE currency: the story behind the money in your pockets
COMPANY%20PROFILE
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Thank You for Banking with Us
Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
SPECS
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Bob%20Marley%3A%20One%20Love
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