International Consolidated Airlines Group (IAG) today (February 26, 2021) presented Group consolidated results for the year to December 31, 2020.

COVID-19 situation and management actions:

Passenger capacity in quarter 4 was 26.6 per cent of 2019 and for the full year was 33.5 per cent of 2019 and continues to be adversely affected by the COVID-19 pandemic, together with government restrictions and quarantine requirements

Current passenger capacity plans for quarter 1, 2021 are for around 20 per cent of 2019 capacity, but remain uncertain and subject to review

969 cargo-only flights operated in quarter 4

Additional funding of EUR3.4 billion secured in quarter 4, including GBP2.0 billion commitment from UK Export Finance finalised in February 2021 and $1.0 billion EETC for British Airways, $0.2 billion sales and leaseback transactions for Iberia and EUR150 million for Aer Lingus backed by the Ireland Strategic Investment Fund (ISIF), with EUR0.8 billion bridge financing facilities repaid

2020 capex reduced by EUR2.3 billion, from plans at the start of the year, to EUR1.9 billion, with EUR0.5 billion due to seven aircraft deliveries delayed from Q4-20 into 2021; 2021 capex expected to be lower than 2020

British Airways reached agreement to defer EUR495 million of pension contributions due between September 2020 and October 2021

British Airways reached agreement in principle over restructuring plans for cargo employees, following agreement with the other main British Airways employee groups earlier in 2020

Group continues to focus on cost reduction, increasing the variability of its cost-base and liquidity initiatives

IAG period highlights on results:

Fourth quarter operating loss EUR1,471 million (2019: operating profit EUR93 million), and operating loss before exceptional items EUR1,165 million (2019: operating profit before exceptional items EUR765 million)

Operating loss for the year to December 31, 2020 EUR7,426 million (2019: operating profit EUR2,613 million), and operating loss before exceptional items EUR4,365 million (2019: operating profit before exceptional items EUR3,285 million)

Exceptional charge before tax in the year to December 31, 2020 of EUR3,061 million on discontinuance of fuel and foreign exchange hedge accounting, impairment of fleet and restructuring costs; exceptional charge before tax for quarter 4 EUR306 million

Loss after tax and exceptional items for the year to December 31, 2020 EUR6,923 million (2019: profit EUR1,715 million) and loss after tax before exceptional items: EUR4,325 million (2019: profit before exceptional items EUR2,387 million)

Cash of EUR5,917 million at December 31, 2020 down EUR766 million on December 31, 2019. Committed and undrawn general and aircraft facilities were EUR2.14 billion, bringing total liquidity to EUR8.1 billion. Including EUR2.2 billion proceeds from the UK Export Finance (UKEF) gives total pro-forma liquidity of EUR10.3 billion.

For definitions refer to the Alternative performance measures section.

Cash comprises cash, cash equivalents and interest-bearing deposits.

1 The earnings per share information for 2019 has been restated to reflect the impact of the rights issue.

Luis Gallego, IAG's Chief Executive Officer, said:

'In 2020, we're reporting an operating loss of EUR4,365 million before exceptional items compared to an operating profit of EUR3,285 million in 2019. Total operating losses including exceptional items relating to fuel and currency hedges, early fleet retirement plus restructuring costs came to EUR7,426 million.

'Our results reflect the serious impact that COVID-19 has had on our business. We have taken effective action to preserve cash, boost liquidity and reduce our cost base. Despite this crisis, our liquidity remains strong. At 31 December, the Group's liquidity was EUR10.3 billion including a successful EUR2.7 billion capital increase and GBP2 billion loan commitment from UKEF. This is higher than at the start of the pandemic.

'In 2020, our capacity decreased by 66.5 per cent while our non-fuel costs went down 37.1 per cent thanks to the extraordinary effort across our business. The Group continues to reduce its cost base and increase the proportion of variable costs to better match market demand. We're transforming our business to ensure we emerge in a stronger competitive position.

'IAG Cargo's turnover increased by almost EUR200 million to EUR1.3 billion. Cargo helped to make longhaul passenger flights viable. In addition, we operated 4,003 cargo-only flights in the year.

'I would like to thank our employees across the Group for their remarkable commitment, resilience and flexibility through this crisis. They have adapted quickly to new ways of working and made big sacrifices in terms of salary and working time. Our people have played a central role in all we have achieved during these challenging times.

'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.

'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.'

Trading outlook

Given the uncertainty on the impact and duration of COVID-19, IAG is not providing profit guidance for 2021.

LEI: 959800TZHQRUSH1ESL13

This announcement contains inside information and is disclosed in accordance with the Company's obligations under the Market Abuse Regulation (EU) No 596/2014.

Steve Gunning, Chief Financial Officer

Forward-looking statements:

Certain statements included in this announcement are forward-looking. These statements can be identified by the fact that they do not relate only to historical or current facts. By their nature, they involve risk and uncertainties because they relate to events and depend on circumstances that will occur in the future. Actual results could differ materially from those expressed or implied by such forward-looking statements.

Forward-looking statements often use words such as 'expects', 'may', 'will', 'could', 'should', 'intends', 'plans', 'predicts', 'envisages' or 'anticipates' or other words of similar meaning. They include, without limitation, any and all projections relating to the results of operations and financial conditions of International Consolidated Airlines Group, S.A. and its subsidiary undertakings from time to time (the 'Group'), as well as plans and objectives for future operations, expected future revenues, financing plans, expected expenditure and divestments relating to the Group and discussions of the Group's business plan. All forward-looking statements in this announcement are based upon information known to the Group on the date of this announcement and speak as of the date of this announcement. Other than in accordance with its legal or regulatory obligations, the Group does not undertake to update or revise any forward-looking statement to reflect any changes in events, conditions or circumstances on which any such statement is based.

Actual results may differ from those expressed or implied in the forward-looking statements in this announcement as a result of any number of known and unknown risks, uncertainties and other factors, including, but not limited to, the effects of the COVID-19 pandemic and uncertainties about its impact and duration, many of which are difficult to predict and are generally beyond the control of the Group, and it is not reasonably possible to itemise each item. Accordingly, readers of this announcement are cautioned against relying on forward-looking statements. Further information on the primary risks of the business and the Group's risk management process is set out in the Risk management and principal risk factors section in the Annual Announcement and Accounts 2019; these documents are available on www.iairgroup.com. All forward-looking statements made on or after the date of this announcement and attributable to IAG are expressly qualified in their entirety by the primary risks set out in that section. Many of these risks are, and will be, exacerbated by the COVID-19 pandemic and any further disruption to the global airline industry and economic environment as a result.

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IAG Investor Relations

Waterside (HAA2),

PO Box 365,

Harmondsworth,

Middlesex,

UB7 0GB

Tel: +44 (0)208 564 2990

Investor.relations@iairgroup.com

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