Today British Airways’s parent company IAG presented its interim Q2 results along with some information about its plans for the future.
Here are the main points:
- The airline is planning to ramp-up from 150 flights per day in early June to 340 in late August. This is most likely as a result of the US and EU being allowed to visit without quarantine.
- Terminal 3 is expected to re-open for BA operations by end of September 2021
- The short-haul peak summer holiday schedule this year is larger than in summer 2019.
- BA has furloughed 18,000 UK employees
- They are looking at overseas headcount restructuring to save costs.
- New Avios collection partnerships to be announced in the second half of 2021 including BPme Rewards in the UK
- British Airways sales from the USA increased by 95% over the previous 5-day average on 28 July afternoon after UK Government announced quarantine free arrival for fully-vaccinated from the US and EU.
- One of the interesting issues is the lack of aircraft after BA retired 31 B747s in 2020 ahead of schedule. Many others were put into storage. Staff are also an issue after they made a large number redundant in 2020.
- The current situation is:
- Longhaul aircraft:
• 18% fewer aircraft than 2019 (and smaller)
• 92% of fleet operationally ready - Shorthaul aircraft:
• Similar number of aircraft to 2019
• 80% of fleet operationally ready - Pilots: All ready to fly, but c.15% fewer than 2019
- Cabin crew: Ready to fly up to maximum capacity, but there are around 30% fewer than in 2019
- Longhaul aircraft:
- The maximum capacity that BA could achieve with the aircraft and staff restraints is 73% of 2019’s capacity by the end of 2021
The main bit of good news is that despite their losses, BA remains in a stronger position financially. Their liquidity position remains higher than before the COVID-19 crisis with €10.8 billion now versus €9.1bn in December 2019. However, if the US and other long-haul routes do not reopen soon, this could have an impact on the position. While short-haul is doing OK, the London-New York route along with other key US gateways were some of BA’s most lucrative. Without a full reopening, their position is difficult as time goes on.
In other interesting news, Terminal 5 is creaking at the seams today with long queues for check-in including the First Wing. The Concorde Terrace has been very busy leading to a reopening of the terrace of the actual Concorde Room.
With the return of US passengers next week, hopefully, this may mean the real Concorde Room reopens soon. It has always been contingent mainly on the US reopening. Hopefully, with the rise in bookings at least from the US, it could lead to a reopening next month.
