The owner of British Airways has placed its hopes for a return to profitability on strong demand for transatlantic travel after posting a loss for its key summer season.

International Airlines Group (IAG) said the gradual lifting of COVID-19 travel restrictions in key markets – culminating in the full reopening of the US travel corridor due on Monday – should enable a return to the black in 2022 after the worst run of losses in its history.

The company reported that passenger numbers improved significantly during the three months to the end of September – its third quarter – helping pre-tax losses ease to £611m from the £1.7bn sum in the same period last year.

But group passenger capacity across its brands, which also include Iberia and Aer Lingus, remained at just 43% of pre-pandemic levels, IAG said.

It added that it was planning for a figure of 60% for the current quarter, which includes Christmas and 90% for summer 2022.

The performance mirrors an improving picture for a sector that was among those worst hit by the pandemic, resulting in thousands of job losses last year including 13,000 at BA alone as international travel went in to hibernation.

IAG chief executive Luis Gallego said of the recovery: “All our airlines have shown improvements with the group’s operating loss more than halved compared to previous quarters.”

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He said of the end of US restrictions: “The full reopening of the transatlantic travel corridor from Monday is a pivotal moment for our industry.

“British Airways is serving more US destinations than any transatlantic carrier and we’re delighted that we can get our customers flying again.

“Longhaul traffic has been a significant driver of revenue, with bookings recovering faster than shorthaul as we head into the winter.

“Premium leisure is performing strongly at both Iberia and British Airways and there are early signs of a recovery in business travel.”

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