Iberia closed 2020 with operating losses of 1,411 million euros (1,706 million dollars at the current exchange rate), which meant a loss of 3.8 million euros (4.6 million dollars) a day on average during the past year .
Iberia reduced its total revenue in 2020 by 60 percent, with 2,259 million euros (2,731 million dollars), although the passenger business contracted by 71.4 percent, although achieving an average occupancy of 70.1 percent.
Iberia’s cargo revenue fell 17.6 percent to 240 million euros ($ 290 million), in contrast to British Airways, also under the same parent company IAG, which improved this section by 25 percent year-on-year, to 890 million euros (1,075 million dollars).
In terms of passengers, Iberia’s offer (in seats per kilometer) fell by 65.5 percent and passengers per kilometer transported fell 72.3 percent.
Thus, in 2020 Iberia lost 17 occupancy points compared to the previous year, but its 70 percent of seats sold was above the average for its IAG group, which was 63.8 percent after falling 20 points, especially by the decreases of Aer Lingus of 46.4 per cent and of British Airways of 61.4 per cent.
IAG, owner of Iberia and British Airways, presumes that as of December 31, the group’s liquidity was 10.3 billion euros, including 2.7 billion euros from a capital increase and a loan of 2 billion pounds sterling from UK Export Finance (UKEF). This figure is higher than before the pandemic.
Cash stood at 5,917 million euros at December 31, 2020, which represents a decrease of 766 million euros compared to December 31, 2019. The net debt of the airline group has increased by 2,200 million in one year, to 9,762 million as of December 31, 2020 (Iberia sees a black future and a new quota for America with Air Europa).
The purchase of Air Europa by Iberia, readjusted a few days ago to 500 million euros after being approved by the boards of directors of both airlines, occurs in an unprecedentedly transformative context, as Brexit and its legal risks converge; the public rescue of Air Europa; the past, present and future income crisis; the layoffs necessary to adapt to the demand, and the new boss that the two airlines have either just launched or are about to appoint (Iberia-Air Europa, between Brexit, bailout, layoffs, crisis and new boss).
Up to seven Spanish airlines plan to operate flights between their country and Latin American destinations during this 2021, as Iberia, Air Europa and Level are already doing and hope to continue, to which Wamos Air, Iberojet (former Orbest and Evelop), Plus Ultra are scheduled to join. and the new World2Fly, owned by Iberostar, according to the compilation of REPORTUR.mx. (Seven Spanish airlines plan to land in Latin America in 2021).
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