BA owner IAG reports €3.5bn loss as it monitors Ukraine developments

International Airlines Group, which owns British Airways, expects capacity to hit 85% of pre-pandemic levels across the year. Photograph: Guy Bell/Alamy

British Airways’ owner has said a return to profit was still on course this year despite war in Ukraine and rising oil prices, with its battered share price nosing upwards on Friday after a week of market turmoil.

International Airlines Group said it had more than halved its losses to €3.5bn (£2.9bn) in 2021, having slashed staff and costs during the pandemic, and could still return to the black this year should its operations avoid further fallout from Covid-19.