S&P turns IAG outlook to stable

S&P said it changed the outlook for International Consolidated Airlines Group SA to stable from negative and affirmed the BB ratings on the company and its unsecured debt.

“The omicron variant constrained passenger volumes in first-quarter 2022, but pent-up demand should support a strong summer season. Assuming no renewed and protracted travel restrictions beyond those currently in place, we anticipate European airline traffic will reach 50%-65% of 2019 levels in 2022 and 70%-85% in 2023, rising close to the 2019 base only by 2024,” S&P said in a press release.

The agency noted IAG also boosted its operating capacity, or available seat kilometers, to 65% of 2019 levels from the 58% deployed in fourth-quarter 2021.

“This represented a significant increase compared with 2021, when it flew 36% of pre-pandemic capacity,” S&P said.

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