Category Archives: Level

IAG returns to profitable for the first six months of 2022

International Consolidated Airlines Group (IAG) presented its Group consolidated results for the six months to June 30, 2022.

IAG returns to profit in the second quarter following strong recovery in demand across all airlines

IAG financial results highlights for the period:

Operating profit for the second quarter €293 million (2021: operating loss €967 million), and operating profit before exceptional items €287 million (2021: operating loss before exceptional items €1,045 million)
Operating loss for the half year €438 million (2021: operating loss €2,035 million), and operating loss before exceptional items €467 million (2021: operating loss before exceptional items €2,180 million)
Profit after tax and exceptional items for the second quarter €133 million (2021: loss €981 million) and profit after tax before exceptional items €127 million (2021: loss €1,045 million)
Loss after tax and exceptional items for the half year €654 million (2021: loss €2,048 million) and loss after tax before exceptional items €683 million (2021: loss €2,169 million)
Strong liquidity at June 30, 2022:
- Total liquidity increased to €13,489 million (December 31, 2021: €11,986 million)
- Cash1 of €9,190 million, up €1,247 million on December 31, 2021, with significantly positive working capital, driven
  principally by bookings for travel in the second half of the year
- Committed and undrawn general and aircraft financing facilities of €4,299 million (December 31, 2021: €4,043
  million), including an additional €200 million loan facility for Aer Lingus from the Ireland Strategic Investment Fund
Net debt at June 30, 2022 was down €688 million since December 31, 2021 to €10,979 million, reflecting the seasonal
benefit on cash of bookings for travel in the second half of the year

Customer demand continues to recover strongly

Passenger capacity in quarter 2 was 78% of 2019 (Q1 guidance: c80%), up from 65% in quarter 1, driven primarily by IAG’s key regions of European shorthaul (capacity 89% of 2019), North America (84%) and Latin America & Caribbean (81%)
Passenger unit revenue in quarter 2 increased by 6.4% compared to 2019, helping to offset lower capacity and higher fuel costs, driven by passenger revenue yield 10.6% higher than in 2019
Load factor of 81.8% (3.2 points lower than in 2019, but higher than 72.2% in quarter 1)
By the end of quarter 2, premium leisure revenue had almost fully recovered to 2019’s level, despite capacity being
significantly lower. Business channel revenue had recovered to c.60% of 2019’s level
In response to the challenging operational environment at Heathrow, British Airways’ capacity was limited to 69.1% in quarter 2 (compared to 57.4% in quarter 1) and plans to increase to c.75% in quarter 3
IAG’s overall passenger capacity plans for the remainder of 2022 are c.80% in quarter 3 and c.85% in quarter 4, a reduction
of 5% for the second half of the year compared to previous guidance, mainly due to the challenges at Heathrow; full-year capacity is expected to be c.78% of 2019 (compared to c.80% previously), with North America close to 2019 capacity by the end of the year
SAF (Sustainable Aviation Fuel) purchase commitments increased to $865 million (from $400 million previously) for the next 20 years, including a quarter of IAG’s SAF target for 2030 (10% of total fuel needs)

Luis Gallego, IAG Chief Executive Officer, said:

“In the second quarter we returned to profit for the first time since the start of the pandemic following a strong recovery in demand across all our airlines. This result supports our outlook for a full year operating profit.

“Our performance reflected a significant increase in capacity, load factor and yield compared to the first quarter. “Premium leisure remains strong while business travel continues a steady recovery in all airlines.

“Iberia and Vueling were the best performing carriers within the Group. The Spanish domestic market and routes to Latin America continued to lead the recovery with demand exceeding 2019 levels last month.

“Forward bookings show sustained strength and North Atlantic demand continues to grow following the lifting of the US COVID testing requirements in June.

“Although bookings into the fourth quarter are seasonally low at this time of year, we are seeing no signs of any weakness in demand.

“Our industry continues to face historic challenges due to the unprecedented scaling up in operations, especially in the UK where the operational challenges of Heathrow airport have been acute. Our airline teams remain focused on enhancing operational resilience and improving customer experience. I would like to thank those customers affected for their loyalty and patience and our colleagues for their hard work and commitment. We will continue working with the industry to address these issues as aviation emerges from its biggest crisis ever.

“In line with our net zero commitment by 2050, we have announced the addition of 50 new Boeing 737s and 59 Airbus A320 Neo family aircraft subject to shareholder approval. These modern, fuel-efficient planes will see us over 60 per cent through our shorthaul fleet replacement by 2028.

“As we build back operational resilience, our strong portfolio of brands, ability to deliver efficiencies through our Group scale, strong capital discipline and our leadership position in sustainability will generate long term shareholder value.”

Trading outlook

IAG expects pre-exceptional operating profit to be significantly improved for quarter 3 2022 compared to quarter 2 and to be positive for full year 2022. Net cash flow from operating activities is expected to be significantly positive for the year. This assumes no further setbacks related to COVID-19 and government-imposed restrictions or material impacts from geopolitical developments. Net debt is expected to increase by year end compared with the end of 2021.

Aircraft:

Level returns to Los Angeles and San Francisco from Barcelona

Starting this week, LEVEL, IAG’s low-cost long-haul airline, connects Los Angeles with Barcelona and resumes its direct San Francisco–Barcelona route as part of its Summer 2022 Program.

LEVEL is the only airline that offers a direct connection from Los Angeles and San Francisco to Barcelona. The route from Los Angeles, the airline’s highlight for this summer season, will initially operate with three frequencies a week, on Mondays, Thursdays, and Saturdays, and, as of June 1, an additional frequency will be added on Wednesdays, taking the total up to four. The route from San Francisco resumes with four weekly frequencies, including operations on Tuesdays, Thursdays, Saturdays, and Sundays.

This low-cost company is characterized by offering tailor-made customer experiences with very affordable prices. In fact, both routes to Barcelona are on sale from $479 round trip from Los Angeles and from $509 round trip from San Francisco.

The routes from Los Angeles and San Francisco are two of four routes that LEVEL will operate in the United States during this 2022 summer season. In addition to Los Angeles and San Francisco, LEVEL is also flying to Barcelona from New York and a Boston–Barcelona route will be added on May 1.

Moreover, the airline’s codeshare with American Airlines and Alaska Airlines links the city of Barcelona with the US market thanks to the connecting reservations to and from destinations offered by those airlines. Thus, this codeshare provides the destinations of American Airlines and Alaska Airlines with a greater number of connections to Barcelona and other Spanish and European destinations through the network of Vueling, IAG’s low-cost short/medium-haul airline.

LEVEL will offer more than 11,000 weekly seats on its routes to the United States, which is more than double what it offered in 2019, before the pandemic.

Barcelona is a cosmopolitan destination in Spain. Surrounded by the Mediterranean Sea and the art of Gaudí, the city offers its visitors a vast array of culture, history, and spectacular beaches for fun or just relaxing. The city is also well known for its rich gastronomy, with restaurants for every taste.

Route details

Frequency	Departure airport	Departure time	Arrival airport	Arrival time
*Monday, Wednesday, Thursday, and Saturday**	BCN	14:00	LAX	18:10
*Monday, Wednesday, Thursday, and Saturday**	LAX	19:55	BCN	16:40 +1
Tuesday, Thursday, Saturday, and Sunday	BCN	14:00	SFO	18:10
Tuesday, Thursday, Saturday, and Sunday	SFO	20:10	BCN	17:00 +1

* From June 1, a fourth additional frequency is added to the Los Angeles–Barcelona route.

To enter Spain, it is necessary to be vaccinated and present a Covid-19 vaccination certificate. Tourists can have two doses if no more than 270 days have passed since the date of the last vaccination, or three doses if more than 14 days have passed since the third vaccination.

If the established vaccination requirements are not met, a negative COVID-19 test carried out no more than 72 hours prior to arrival in Spain or an antigen test carried out no more than 24 hours prior to arrival can be presented instead. It is also essential to fill out the Spain Travel Health form and obtain the QR code, vaccinated or not.

Top Copyright Photo: Level (Spain) Airbus A330-202 EC-MOU (msn 1777) LAX (Michael B. Ing). Image: 938159.

Level aircraft slide show:

Level aircraft photo gallery:

IAG reports a first quarter operating loss of €1,068 million

Level to add two Airbus A330-200s to its fleet

International Airlines Group’s (IAG) low cost long-haul airline brand, Level, is expanding its fleet with two additional Airbus A330-200s, for delivery in 2019, taking its total order for the type to seven.

This latest firm order comes less than 12 months after IAG purchased the last batch of three A330-200s. They are configured with 314 seats, 21 premium economy and 293 economy.

Level currently operates two A330-200s from Barcelona, soon to be three, and one from Paris Orly, where it commenced services earlier this month. A second A330-200 will join the Paris fleet later this summer.

Both Barcelona and Paris will receive one of the new A330-200s being delivered in 2019 bringing a total of four aircraft in Barcelona and three in Paris.

Level began operations in June 2017 with two new A330-200s flying from Barcelona to four destinations in the Americas.

The A330 is one of the world’s bestselling, most efficient and versatile widebody aircraft. With best in class operating economics, it is the benchmark product for the growing low cost long-haul model worldwide.

To date the A330 Family has won over 1,700 orders with over 1,370 currently flying with more than 110 operators worldwide. With an operational reliability of 99.4 percent and various product enhancements, the A330 Family is the most cost-efficient and capable widebody aircraft to date.

Top Copyright Photo: Level (Iberia) Airbus A330-202 EC-MOY (msn 1784) LAX (Michael B. Ing). Image: 942833.

Level (Spain) aircraft slide show:

Level’s first Paris Orly flight takes off

Level’s first flight from Paris Orly took off to Montreal (Trudeau) at 1945 CET/1845 BST on July 2.

The inaugural French flight on International Airlines Group’s (IAG) longhaul low cost airline brand arrived in Montreal at 2130 (local time) with more than 300 passengers on board a new Airbus A330-200 aircraft (F-HLVL, above). Flights to Montreal will operate three times a week and on July 3 Level commenced its four per week service to Guadeloupe.

This year two new Airbus A330-200 aircraft will be based at Orly, each with 293 economy and 21 premium economy seats. A third A330-200 aircraft will be added in 2019 providing the opportunity to expand LEVEL’s network further. These aircraft are equipped with the latest high speed Wi-Fi with prices starting at €8.99.

In Barcelona, a third Airbus A330-200 will start operations in September and another one will be added next year totalling four aircraft in 2019. Level currently operates from El Prat’s airport to Buenos Aires, San Francisco and Boston with a summer service to Los Angeles.

Level’s Paris flights are operated by IAG’s French airline OpenSkies which has transitioned into Level.

All photos by Level/IAG.

Level to move Bay Area service from Oakland to San Francisco

Level is moving its twice-weekly Barcelona – Oakland service to San Francisco. The change will occur on October 28, 2018 according to Airline Route.

Level aircraft slide show:

Level to launch four long-haul routes from Paris Orly, the OpenSkies brand to be retired

International Airlines Group will launch flights to Montreal, Newark, Guadeloupe and Martinique from Paris Orly from July 2018 via Level its low cost longhaul airline brand.
Fares start from €99 one way.

Flights to Montreal start on July 2, 2018 and operate three times per week.
Flights to Guadeloupe start on July 3, 2018 and operate four times per week.
Flights to Martinique start on September 3, 2018 and operate three times per week.
Flights to Newark start on September 4, 2018 and operate four times per week.

Level will base two Airbus A330-200 aircraft at Orly, each with 293 economy and 21 premium economy seats.

Checked luggage (plus a free cabin bag), meals, seat selection and the latest movie releases will be complimentary for customers flying in premium economy. Those travelling in economy can chose what they want to buy based on a menu of choices. Next generation inflight technology will be available for all customers with a wide range of onboard entertainment options. There is also super-high speed internet connectivity with prices starting at €8.99.

Customers can also earn and redeem Avios, IAG airlines’ loyalty currency, giving them the opportunity to fly to 380 destinations across the Group’s network.

Level’s Paris flights will be operated by staff who currently work for IAG’s French airline OpenSkies which is based at the airport. The OpenSkies brand will cease to operate at the end of next summer and all its staff will operate Level flights.

Above Copyright Photo: OpenSkies (British Airways) Boeing 767-336 ER F-HILU (msn 24341) JFK (Fred Freketic). Image: 937268.

Flights from Orly to New York will continue to operate under the OpenSkies brand until the end of summer 2018.

In Barcelona, Level will launch a new route to Boston on March 28, 2018. Flights will operate up to three times each week for the summer season. A third A330-200 aircraft will be added to the Barcelona fleet later in the summer providing the opportunity to expand its network further.

Level flies currently from Barcelona to Buenos Aires, San Francisco (Oakland) and Punta Cana with a summer service to Los Angeles.

Top Copyright Photo: Level (Iberia) Airbus A330-202 EC-MOU (msn 1777) LAX (Michael B. Ing). Image: 938159.

Level:

OpenSkies:

IAG’s LEVEL takes off from Barcelona to Los Angeles

IAG has issued this statement:

LEVEL’s first flight took off from Barcelona to Los Angeles at 1540 CET/1440 BST on June 1, 2017.

The inaugural flight on International Airlines Group’s (IAG) longhaul low cost airline brand will arrived in LA at 1955 (local time) completely full with 314 passengers on board a new Airbus A330-200. Flights to LA will operate twice per week and tomorrow LEVEL will commence its three per week service to San Francisco (Oakland).

This is Spain’s first longhaul low cost operation and is the first step towards LEVEL’s expansion from other European cities. More than 134,000 tickets have been sold since its launch on March 17.

At Barcelona airport, Willie Walsh, IAG’s chief executive said: “This is the start of a fantastic new adventure for IAG. LEVEL’s sales are well ahead of our expectations in all markets. The brand has resonated with a new audience, many of whom are flying longhaul for the first time.

“In 2018, LEVEL will increase its fleet to five aircraft and we are considering other European bases for the operation.

Flights on LEVEL can be booked via the websites of its sister airlines Iberia and Vueling in addition to flylevel.com. Customers from across Spain and Europe can book flights on both airlines to Barcelona which connect onto LEVEL’s longhaul network with a single ticket. LEVEL has also launched a codeshare agreement with American Airlines on flights between Barcelona and the US.

Photos: IAG. Airbus A330-202 EC-MOY (msn 1784) is the first LEVEL-painted aircraft.

Video:

IAG to launch LEVEL, a new low-cost, long-haul carrier

International Airlines Group (IAG) is launching LEVEL – a new low cost longhaul airline brand that will take to the skies in June 2017 with flights from Barcelona to Los Angeles, San Francisco (Oakland), Buenos Aires and Punta Cana.

LEVEL will fly two new Airbus A330 aircraft branded in its own livery and fitted with 293 economy and 21 premium economy seats. Initially it will be operated by Iberia’s flight and cabin crew and will create up to 250 jobs based in Barcelona.

Barcelona has been chosen as the first European city for the launch of IAG’s new operation but LEVEL will look to expand its flights from other European cities.

Fares start from €99/US$149 one way.

Checked luggage (in addition to a free cabin bag), meals, seat selection and the latest movie releases will be complimentary for customers flying in premium economy. Those travelling in economy can chose what they want to buy based on a menu of choices. All customers will have access to next generation inflight technology with a wide range of onboard entertainment options. High speed internet connectivity will be available with prices starting at €8.99.

LEVEL’s customers will be able to earn and redeem Avios – the loyalty currency for IAG’s airlines. This will give them the opportunity to fly to 380 destinations across the Group’s network.

Willie Walsh, IAG chief executive, said: “LEVEL is an exciting new IAG airline brand which will bring a stylish and modern approach to flying at prices that are even more affordable. It will benefit from having the strength of one of the world’s largest airline groups behind it.

“LEVEL will become IAG’s fifth main airline brand alongside Aer Lingus, British Airways, Iberia and Vueling. It will complement our existing airline portfolio and further diversify our current customer base.

Image: IAG.