Balance at December 31 1,282 1,282 The deferred tax assets mainly arise in Spain and the UK and are expected to reverse in full beyond one year. Recognition of the deferred tax assets is supported by the expected reversal of deferred tax liabilities in corresponding periods, and projections of operating performance laid out in the management approved business plans. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-682": {
"value": "g Tax-related contingent liabilities The Group has certain contingent liabilities that could be reliably estimated, across all taxes, at December 31, 2022 amounting to \u20ac110 million (December 31, 2021: \u20ac106 million). No material losses are likely to arise from such contingent liabilities. As such the Group does not consider it appropriate to make a provision for these amounts. Included in the tax related contingent liabilities are the following: Merger gain Following tax audits covering the period 2011 to 2014, the Spanish Tax Authorities issued a corporate income tax assessment to the Company regarding the merger in 2011 between British Airways and Iberia. The maximum exposure in this case is \u20ac98 million (December 31, 2021: \u20ac95 million), being the amount in the tax assessment with an estimate of the interest accrued on that assessment through to December 31, 2022. The Company appealed the assessment to the Tribunal Econ\u00f3mico-Administrativo Central or \u2018TEAC\u2019 (Central Administrative Tax Tribunal). On October 23, 2019, the TEAC ruled in favour of the Spanish Tax Authorities. The Company subsequently appealed this ruling to the Audiencia Nacional (National High Court) on December 20, 2019, and on July 24, 2020 filed submissions in support of its case. The Company does not expect a hearing at the National High Court until late 2023 at the earliest. The Company disputes the technical merits of the assessment and ruling of the TEAC, both in terms of whether a gain arose and in terms of the quantum of any gain. The Company believes that it has strong arguments to support its appeals. The Company does not consider it appropriate to make a provision for these amounts and accordingly has classified this matter as a contingent liability. IAG Loyalty VAT In the year ended December 31, 2022 and through to the date of this report, His Majesty\u2019s Revenue and Customs (HMRC) has issued notices of VAT assessments for the 13 months ended March 2019 to Avios Group (AGL) Limited, a controlled undertaking of the Group trading as IAG Loyalty. At December 31, 2022 and through to the date of these financial statements HMRC\u2019s enquiries into IAG Loyalty\u2019s VAT position remain at an early stage. The Group has reviewed the position with its advisors and considers it has strong arguments to support its VAT accounting, including having received rulings previously from HMRC on the matter, and therefore does not consider it probable that an adverse ruling will eventuate. Given the above the Group does not consider it appropriate to record any provision. It is further not possible to estimate reliably any exposure that may arise from this matter until HMRC\u2019s enquiries are further progressed. The Group expects further developments of these matters during the remainder of 2023. 33 Contingent liabilities There are a number of legal and regulatory proceedings against the Group in a number of jurisdictions which at December 31, 2022, where they could be reliably estimated, amounted to \u20ac11 million (December 31, 2021: \u20ac22 million). The Group does not consider it probable that there will be an outflow of economic resources with regard to these proceedings and accordingly no provisions have been recorded. Contingent liabilities associated with income taxes, deferred taxes and indirect taxes are presented in note 10. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-646": {
"value": "g Tax-related contingent liabilities The Group has certain contingent liabilities that could be reliably estimated, across all taxes, at December 31, 2022 amounting to \u20ac110 million (December 31, 2021: \u20ac106 million). No material losses are likely to arise from such contingent liabilities. As such the Group does not consider it appropriate to make a provision for these amounts. Included in the tax related contingent liabilities are the following: Merger gain Following tax audits covering the period 2011 to 2014, the Spanish Tax Authorities issued a corporate income tax assessment to the Company regarding the merger in 2011 between British Airways and Iberia. The maximum exposure in this case is \u20ac98 million (December 31, 2021: \u20ac95 million), being the amount in the tax assessment with an estimate of the interest accrued on that assessment through to December 31, 2022. The Company appealed the assessment to the Tribunal Econ\u00f3mico-Administrativo Central or \u2018TEAC\u2019 (Central Administrative Tax Tribunal). On October 23, 2019, the TEAC ruled in favour of the Spanish Tax Authorities. The Company subsequently appealed this ruling to the Audiencia Nacional (National High Court) on December 20, 2019, and on July 24, 2020 filed submissions in support of its case. The Company does not expect a hearing at the National High Court until late 2023 at the earliest. The Company disputes the technical merits of the assessment and ruling of the TEAC, both in terms of whether a gain arose and in terms of the quantum of any gain. The Company believes that it has strong arguments to support its appeals. The Company does not consider it appropriate to make a provision for these amounts and accordingly has classified this matter as a contingent liability. IAG Loyalty VAT In the year ended December 31, 2022 and through to the date of this report, His Majesty\u2019s Revenue and Customs (HMRC) has issued notices of VAT assessments for the 13 months ended March 2019 to Avios Group (AGL) Limited, a controlled undertaking of the Group trading as IAG Loyalty. At December 31, 2022 and through to the date of these financial statements HMRC\u2019s enquiries into IAG Loyalty\u2019s VAT position remain at an early stage. The Group has reviewed the position with its advisors and considers it has strong arguments to support its VAT accounting, including having received rulings previously from HMRC on the matter, and therefore does not consider it probable that an adverse ruling will eventuate. Given the above the Group does not consider it appropriate to record any provision. It is further not possible to estimate reliably any exposure that may arise from this matter until HMRC\u2019s enquiries are further progressed. The Group expects further developments of these matters during the remainder of 2023. 15 Capital expenditure commitments Capital expenditure authorised and contracted but not provided for in the accounts, including outstanding aircraft commitments, at December 31, 2022 amounted to \u20ac13,749 million (December 31, 2021: \u20ac10,911 million). The outstanding aircraft commitments including the expected delivery timeframes, totalling \u20ac13,484 million (2021: \u20ac10,813 million), are as follows: Aircraft future deliveries at December 31 2022 1 2021 1 Airbus A320 (from 2023 to 2028) 45 22 Airbus A321 (from 2023 to 2028) 46 20 Airbus A321 XLR (from 2024 to 2026) 14 14 Airbus A350-900 (from 2023 to 2030) 7 16 Airbus A350-1000 (from 2023 to 2024) 5 10 Boeing 777-9 (from 2026 to 2028) 18 18 Boeing 787-10 (from 2023 to 2024) 7 10 Boeing 737-8200 (from 2024 to 2025) 25 \u2013 Boeing 737-10 (from 2026 to 2027) 25 \u2013 Total 192 110 1 Capital commitments exclude options to purchase additional aircraft. In May 2022, the Group agreed to purchase 25 Boeing 737-8200 and 25 737-10 aircraft, with 100 options to purchase further such aircraft. In addition, in July 2022, the Group agreed to exercise its option over 12 Airbus A320neos/A321neos and to purchase 25 Airbus A320neos/A321neos with 50 options to purchase further such aircraft. The determination of the split between A320neos and A321neos will be made closer to delivery. Both of these agreements were subject to shareholder approval and were subsequently approved at the Extraordinary General Meeting of the Company on October 26, 2022. The majority of these commitments are denominated in US dollars translated at the closing exchange rate at the reporting date and include escalation clauses dependent on the timing of aircraft deliveries. Under the terms of the committed purchase agreements, the Group is required to make periodic advance payments towards the purchase price, with the commitments above stated net of advance payments that have been made at the reporting date. The Group has certain rights to defer aircraft deliveries and to cancel commitments in the event of significant delays to aircraft deliveries caused by the aircraft manufacturers. No such rights had been exercised as at December 31, 2022.33 Contingent liabilities
There are a number of legal and regulatory proceedings against the Group in a number of jurisdictions which at December 31, 2022, where
they could be reliably estimated, amounted to \u20ac11 million (December 31, 2021: \u20ac22 million). The Group does not consider it probable that
there will be an outflow of economic resources with regard to these proceedings and accordingly no provisions have been recorded.
Contingent liabilities associated with income taxes, deferred taxes and indirect taxes are presented in note 10.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-614": {
"value": "11 Earnings per share \u20ac million 2022 2021 Earnings/(losses) attributable to equity holders of the parent for basic earnings/(losses) per share 431 (2,933) Income statement impact of convertible bonds (104) \u2013 Diluted earnings/(losses) attributable to equity holders of the parent and diluted earnings/(losses) per share 327 (2,933) 2022 Number \u2018000 2021 Number \u2018000 Weighted average number of ordinary shares in issue 4,958,420 4,963,945 Weighted average number of ordinary shares in issue for diluted earnings/(losses) per share 5,344,152 4,963,945 \u20ac cents 2022 2021 Basic earnings/(losses) per share 8.7 (59.1) Diluted earnings/(losses) per share 6.1 (59.1) The effect of the assumed conversion of the \u20ac825 million convertible bond 2028 and outstanding employee share schemes have a dilutive impact on the earnings per share for the year to December 31, 2022 due to the reported profit after tax for the year, but are antidilutive for the year to December 31, 2021 due to the reported loss after tax for the year, and therefore have not been included in the diluted loss per share calculation for 2021. For information relating to Adjusted earnings/(losses) per share refer to the Alternative performance measures section.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-615": {
"value": "12 Dividends The Directors propose that no dividend be paid for the year to December 31, 2022 (2021: \u20acnil). The future dividend capacity of the Group is dependent on the liquidity requirements and the distributable reserves of the Group\u2019s main operating companies and their capacity to pay dividends to the Company, together with the Company\u2019s distributable reserves and liquidity. Certain debt obligations place restrictions or conditions on the payment of dividends from the Group\u2019s main operating companies to the Company, including a loan to British Airways partially guaranteed by UKEF and loans to Iberia and Vueling partially guaranteed by the Instituto de Cr\u00e9dito Oficial (ICO) in Spain; these loans can be repaid early without penalty at the election of each company. In Spain, Iberia and Vueling are not permitted to make dividend payments in the reporting period in which they are in receipt of Expedientes de Regulaci\u00f3n Temporal de Empleo or \u2018ERTE\u2019 (Temporary Employment Regulation Records). British Airways agreed with the Trustee of its main UK defined benefit pension scheme (NAPS) as part of the triennial valuation as at March 31, 2021 that, subject to the over-funding protection mechanism, no dividends will be paid to IAG before December 31, 2023 and that any dividends paid to IAG from January 1, 2024 through to September 30, 2025, will trigger a pension contribution of 50 per cent of the amount of the dividend. Further details on the British Airways dividend restrictions agreed with NAPS are given in note 32a. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-616": {
"value": "13 Property, plant and equipment \u20ac million Fleet Property Equipment Total Cost Balance at January 1, 2021 26,936 2,982 1,501 31,419 Additions 709 38 37 784 Modification of leases 236 (2) (26) 208 Disposals (3,035) (74) (135) (3,244) Reclassifications (4) \u2013 (1) (5) Transfers to Non-current assets held for sale (note 16) (111) \u2013 \u2013 (111) Exchange movements 1,265 181 74 1,520 Balance at December 31, 2021 25,996 3,125 1,450 30,571 Additions 3,765 61 101 3,927 Modification of leases 241 129 \u2013 370 Disposals (1,700) (406) (120) (2,226) Reclassifications (4) \u2013 \u2013 (4) Transfers to Non-current assets held for sale (note 16) (44) \u2013 \u2013 (44) Exchange movements (552) (73) (31) (656) December 31, 2022 27,702 2,836 1,400 31,938 Depreciation and impairment Balance at January 1, 2021 11,571 1,282 1,035 13,888 Depreciation charge for the year 1,500 154 84 1,738 Impairment (reversal)/charge for the year 1 (3) 19 \u2013 16 Disposals (2,699) (63) (105) (2,867) Modification of leases \u2013 \u2013 (14) (14) Transfers to Non-current assets held for sale (note 16) (91) \u2013 \u2013 (91) Exchange movements 602 81 57 740 Balance at December 31, 2021 10,880 1,473 1,057 13,410 Depreciation charge for the year 1,642 168 79 1,889 Impairment reversal for the year 1 (8) \u2013 \u2013 (8) Disposals (857) (403) (107) (1,367) Transfers to Non-current assets held for sale (note 16) (25) \u2013 \u2013 (25) Exchange movements (247) (32) (28) (307) December 31, 2022 11,385 1,206 1,001 13,592 1 For details regarding the impairment reversal on fleet assets refer to the Alternative performance measures section. For details regarding the operating segment in which the impairment (reversal)/charge arose, refer to note 5. Net book values December 31, 2022 16,317 1,630 399 18,346 December 31, 2021 15,116 1,652 393 17,161 Analysis at December 31, 2022 Owned 7,242 833 338 8,413 Right of use assets (note 14) 7,993 684 20 8,697 Progress payments 1,071 113 40 1,224 Assets not in current use 11 \u2013 1 12 Property, plant and equipment 16,317 1,630 399 18,346 Analysis at December 31, 2021 Owned 5,736 916 330 6,982 Right of use assets (note 14) 8,626 640 37 9,303 Progress payments 748 96 26 870 Assets not in current use 6 \u2013 \u2013 6 Property, plant and equipment 15,116 1,652 393 17,161 The net book value of property comprises:
\u20ac million 2022 2021
Freehold 469 495
Right of use assets (note 14) 684 640
Long leasehold improvements with a contractual life in excess of 50 years
301 311
Short leasehold improvements with a contractual life of less than 50 years
176 206
Property
1,630 1,652
At December 31, 2022, bank and other loans of the Group are secured on owned fleet assets with a net book value of \u20ac3,931 million
(2021: \u20ac3,081 million).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-617": {
"value": "14 Leases a Amounts recognised in the Consolidated balance sheet Property, plant and equipment includes the following amounts relating to right of use assets: \u20ac million Fleet Property Equipment Total Cost Balance at January 1, 2021 14,008 893 99 15,000 Additions 240 15 \u2013 255 Modifications of leases 236 (2) (26) 208 Disposals (72) (12) (1) (85) Reclassifications 1 (759) \u2013 \u2013 (759) Exchange movements 565 55 2 622 December 31, 2021 14,218 949 74 15,241 Additions 586 28 1 615 Modification of leases 241 129 \u2013 370 Disposals (214) (171) (2) (387) Reclassifications 1 (849) \u2013 (24) (873) Exchange movements (232) (24) \u2013 (256) December 31, 2022 13,750 911 49 14,710 Depreciation and impairment Balance at January 1, 2021 4,884 198 43 5,125 Depreciation charge for the year 963 87 8 1,058 Impairment charge for the year 2 4 16 \u2013 20 Disposals (71) (4) (1) (76) Modification of leases \u2013 \u2013 (14) (14) Reclassifications 1 (394) \u2013 \u2013 (394) Exchange movements 206 12 1 219 December 31, 2021 5,592 309 37 5,938 Depreciation charge for the year 991 93 8 1,092 Impairment reversal for the year 2 (8) \u2013 \u2013 (8) Disposals (191) (170) (1) (362) Reclassifications 1 (528) \u2013 (14) (542) Exchange movements (99) (5) (1) (105) December 31, 2022 5,757 227 29 6,013 Net book value December 31, 2022 7,993 684 20 8,697 December 31, 2021 8,626 640 37 9,303 1 Amounts with a net book value of \u20ac331 million (2021: \u20ac365 million) were reclassified from ROU assets to Owned Property, plant and equipment at the cessation of the respective leases. The assets reclassified relate to leases with purchase options that were grandfathered as ROU assets upon transition to IFRS 16, for which the Group had been depreciating over the expected useful life of the aircraft, incorporating the purchase option. 2 For details regarding the impairment (reversal)/charge on fleet assets refer to the Alternative performance measures section. Interest-bearing long-term borrowings includes the following amount relating to lease liabilities: \u20ac million 2022 2021 January 1 9,637 10,024 Additions 639 310 Modifications of leases 378 208 Repayments (1,886) (1,855) Interest expense 464 400 Disposals (28) (8) Exchange movements 415 558 December 31 9,619 9,637 Current 1,766 1,521 Non-current 7,853 8,116 b Amounts recognised in the Consolidated income statement \u20ac million 2022 2021 Amounts not included in the measurement of lease liabilities Variable lease payments 2 1 Expenses relating to short-term leases 39 26 Amounts expensed as a result of the recognition of ROU assets and lease liabilities Interest expense on lease liabilities 464 400 Gains/(losses) arising from sale and leaseback transactions 1 (6) Depreciation charge for the year 1,092 1,058 Impairment (reversal)/charge for the year (8) 20 During 2020 the IASB issued \u2018COVID-19 related rent concessions \u2013 amendment to IFRS 16 Leases\u2019 to provide a practical expedient to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions for those lease modifications arising as a direct result of COVID-19. During 2021, the IASB extended the period for the application of the practical expedient. The Group has applied this practical expedient to all such modifications in the preparation of the consolidated financial statements. The net impact on the Income statement for 2022 was \u20acnil (2021: credit of \u20ac8 million) reflecting the changes to lease payments that arose from such concessions. c Amounts recognised in the Consolidated cash flow statement \u20ac million 2022 2021 1 Cash flows arising from transactions giving rise to lease liabilities Total cash outflows arising from lease liabilities \u2013 aircraft 1,699 1,711 Total cash outflows arising from lease liabilities \u2013 other 178 137 Total cash inflows arising from sale and leaseback transactions \u2013 aircraft 718 213 Cash flows arising from transactions that do not give rise to the recognition of lease liabilities Total cash outflows arising from short-term leases, low-value assets and variable lease payments 41 27 Total cash outflows arising from asset financed liabilities 292 209 1 During 2022, the Group has re-presented cash flow amounts to disclose amounts arising from all contractual leases as opposed to only those that give rise to right of use assets and lease liabilities. The Group is not exposed to future cash outflows as at December 31, 2022 and December 31, 2021, for which no amount has been recognised in relation to leases not yet commenced to which the Group is committed. d Maturity profile of the lease liabilities The maturity profile of the lease liabilities is disclosed in note 27f. e Extension options The Group has certain leases which contain extension options exercisable by the Group prior to the non-cancellable contract period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The Group assesses at lease commencement whether it is reasonably certain to exercise the extension options. The Group is exposed to future cash outflows (on an undiscounted basis) at December 31, 2022, for which no amount has been recognised, for potential extension options of \u20ac945 million (2021: \u20ac795 million) due to it not being reasonably certain that these leases will be extended. f Lessor accounting The Group leases out certain of its property, plant and equipment. The Group has classified those leases that transfer substantially all of the risks and rewards of ownership to the lessee as finance leases and those leases that do not transfer substantially all of the risks and rewards of ownership to the lessee as operating leases. Finance leases Rental income from finance leases recognised by the Group in 2022 was \u20ac4 million (2021: \u20acnil). Rental income is recorded within Property, IT and other within the Income statement. The following table sets out a maturity analysis of finance lease receipts, showing the undiscounted lease receipts to be received after the reporting date: \u20ac million 2022 2021 Within one year 2 4 One to two years 6 5 Two to five years \u2013 2 More than five years \u2013 \u2013 Total 8 11",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-619": {
"value": "15 Capital expenditure commitments Capital expenditure authorised and contracted but not provided for in the accounts, including outstanding aircraft commitments, at December 31, 2022 amounted to \u20ac13,749 million (December 31, 2021: \u20ac10,911 million). The outstanding aircraft commitments including the expected delivery timeframes, totalling \u20ac13,484 million (2021: \u20ac10,813 million), are as follows: Aircraft future deliveries at December 31 2022 1 2021 1 Airbus A320 (from 2023 to 2028) 45 22 Airbus A321 (from 2023 to 2028) 46 20 Airbus A321 XLR (from 2024 to 2026) 14 14 Airbus A350-900 (from 2023 to 2030) 7 16 Airbus A350-1000 (from 2023 to 2024) 5 10 Boeing 777-9 (from 2026 to 2028) 18 18 Boeing 787-10 (from 2023 to 2024) 7 10 Boeing 737-8200 (from 2024 to 2025) 25 \u2013 Boeing 737-10 (from 2026 to 2027) 25 \u2013 Total 192 110 1 Capital commitments exclude options to purchase additional aircraft. In May 2022, the Group agreed to purchase 25 Boeing 737-8200 and 25 737-10 aircraft, with 100 options to purchase further such aircraft. In addition, in July 2022, the Group agreed to exercise its option over 12 Airbus A320neos/A321neos and to purchase 25 Airbus A320neos/A321neos with 50 options to purchase further such aircraft. The determination of the split between A320neos and A321neos will be made closer to delivery. Both of these agreements were subject to shareholder approval and were subsequently approved at the Extraordinary General Meeting of the Company on October 26, 2022. The majority of these commitments are denominated in US dollars translated at the closing exchange rate at the reporting date and include escalation clauses dependent on the timing of aircraft deliveries. Under the terms of the committed purchase agreements, the Group is required to make periodic advance payments towards the purchase price, with the commitments above stated net of advance payments that have been made at the reporting date. The Group has certain rights to defer aircraft deliveries and to cancel commitments in the event of significant delays to aircraft deliveries caused by the aircraft manufacturers. No such rights had been exercised as at December 31, 2022.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-618": {
"value": "16 Non-current assets held for sale
As at December 31, 2022, the non-current assets held for sale of \u20ac19 million represented two Airbus A321 aircraft. No gain or loss was
recognised on classification as non-current assets held for sale. These aircraft were presented within the British Airways segment and are
expected to exit the business during 2023.
As at December 31, 2021, the non-current assets held for sale of \u20ac20 million represented three Airbus A321 aircraft. No gain or loss was
recognised on classification as non-current assets held for sale. These aircraft are presented within the Aer Lingus segment and exited the
business during 2022.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-647": {
"value": "16 Non-current assets held for sale As at December 31, 2022, the non-current assets held for sale of \u20ac19 million represented two Airbus A321 aircraft. No gain or loss was recognised on classification as non-current assets held for sale. These aircraft were presented within the British Airways segment and are expected to exit the business during 2023. As at December 31, 2021, the non-current assets held for sale of \u20ac20 million represented three Airbus A321 aircraft. No gain or loss was recognised on classification as non-current assets held for sale. These aircraft are presented within the Aer Lingus segment and exited the business during 2022. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-673": {
"value": "17 Intangible assets and impairment review a Intangible assets \u20ac million Goodwill Brand Customer loyalty programmes Landing rights 1 Software ETS assets 2 Other 2 Total Cost Balance at January 1, 2021 593 451 253 1,555 1,474 76 85 4,487 Additions \u2013 \u2013 \u2013 \u2013 149 33 1 183 Disposals \u2013 \u2013 \u2013 (6) (19) (49) \u2013 (74) Exchange movements 3 \u2013 \u2013 56 70 2 1 132 Balance at December 31, 2021 596 451 253 1,605 1,674 62 87 4,728 Additions \u2013 \u2013 \u2013 14 218 360 1 593 Disposals \u2013 \u2013 \u2013 (6) (52) (9) \u2013 (67) Exchange movements (1) \u2013 \u2013 (25) (34) (6) \u2013 (66) December 31, 2022 595 451 253 1,588 1,806 407 88 5,188 Amortisation and impairment Balance at January 1, 2021 249 \u2013 \u2013 132 836 \u2013 62 1,279 Amortisation charge for the year \u2013 \u2013 \u2013 6 167 \u2013 5 178 Disposals \u2013 \u2013 \u2013 \u2013 (13) \u2013 \u2013 (13) Exchange movements \u2013 \u2013 \u2013 4 42 \u2013 (1) 45 Balance at December 31, 2021 249 \u2013 \u2013 142 1,032 \u2013 66 1,489 Amortisation charge for the year \u2013 \u2013 \u2013 6 210 \u2013 2 218 Disposals \u2013 \u2013 \u2013 \u2013 (50) \u2013 \u2013 (50) Exchange movements \u2013 \u2013 \u2013 (2) (23) \u2013 \u2013 (25) December 31, 2022 249 \u2013 \u2013 146 1,169 \u2013 68 1,632 Net book values December 31, 2022 346 451 253 1,442 637 407 20 3,556 December 31, 2021 347 451 253 1,463 642 62 21 3,239 1 The net book value includes non-UK and non-EU based landing rights of \u20ac69 million (2021: \u20ac75 million) that have a definite life. The remaining average life of these landing rights is 13 years. 2 During 2022 the Group separated the ETS assets from Other intangible assets. This change resulted in an amount of \u20ac76 million and \u20ac62 million recorded within ETS assets at January 1, 2021 and January 1, 2022, respectively. There was no net change in total intangible assets. b Impairment review The carrying amounts of intangible assets with indefinite life and goodwill allocated to cash generating units (CGUs) of the Group are: \u20ac million Goodwill Landing rights Brand Customer loyalty programmes Total 2022 Iberia January 1 and December 31, 2022 \u2013 423 306 \u2013 729 British Airways January 1, 2022 47 809 \u2013 \u2013 856 Additions \u2013 14 \u2013 \u2013 14 Disposals \u2013 (6) \u2013 \u2013 (6) Exchange movements (1) (23) \u2013 \u2013 (24) December 31, 2022 46 794 \u2013 \u2013 840 Vueling January 1 and December 31, 2022 28 94 35 \u2013 157 Aer Lingus January 1 and December 31, 2022 272 62 110 \u2013 444 IAG Loyalty January 1 and December 31, 2022 \u2013 \u2013 \u2013 253 253 December 31, 2022 346 1,373 451 253 2,423 \u20ac million Goodwill Landing rights Brand Customer loyalty programmes Total 2021 Iberia January 1 and December 31, 2021 \u2013 423 306 \u2013 729 British Airways January 1, 2021 44 763 \u2013 \u2013 807 Disposals \u2013 (6) \u2013 \u2013 (6) Exchange movements 3 52 \u2013 \u2013 55 December 31, 2021 47 809 \u2013 \u2013 856 Vueling January 1 and December 31, 2021 28 94 35 \u2013 157 Aer Lingus January 1 and December 31, 2021 272 62 110 \u2013 444 IAG Loyalty January 1 and December 31, 2021 \u2013 \u2013 \u2013 253 253 December 31, 2021 347 1,388 451 253 2,439 Basis for calculating recoverable amount The recoverable amounts of the Group\u2019s CGUs have been measured based on their value-in-use, which utilises a weighted average multi- scenario discounted cash flow model. The details of these scenarios are given in the going concern section of note 2, with a weighting of 70 per cent to the Base Case and 30 per cent to the Downside Case. Cash flow projections are based on the business plans approved by the relevant operating companies covering a three-year period. Cash flows extrapolated beyond the three-year period are projected to increase based on long-term growth rates. Cash flow projections are discounted using each CGU\u2019s pre-tax discount rate. Annually the relevant operating companies prepare and approve three-year business plans, and the Board approved the Group three-year business plan in the fourth quarter of the year. Adjustments have been made to the final year of the business plan cash flows to incorporate the impacts of climate change that the Group can reliably estimate at the reporting date. However, given the long-term nature of the Group\u2019s sustainability commitments, there are other aspects of these commitments that cannot be reliably estimated and accordingly have been excluded from the value-in-use calculations (refer to note 4). The business plan cash flows used in the value-in-use calculations also reflect all restructuring of the business where relevant that has been approved by the Board and which can be executed by management under existing labour agreements. Key assumptions The value-in-use calculations for each CGU reflect the ongoing uncertainty of the future implications of COVID-19 and the wider economic and geopolitical environments, including updated projected cash flows for activity from 2023 through to the end of 2025. For each of the Group\u2019s CGUs the key assumptions used in the value-in-use calculations are as follows: 2022 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 5-13 5-10 0-10 4-12 23-25 ASKs as a proportion of 2019 1,2 90-105 92-107 113-123 102-127 n/a Long-term growth rate 1.7 1.5 1.4 1.6 1.7 Pre-tax discount rate 10.4 11.2 12.8 10.1 13.4 2021 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 3-13 2-12 2-11 0-14 22-24 ASKs as a proportion of 2019 1,2 75-103 77-100 97-119 84-115 n/a Long-term growth rate 1.9 1.7 1.6 1.7 1.6 Pre-tax discount rate 11.8 11.4 11.1 10.1 12.0 1 ASKs as a proportion of 2019 and operating margin are both stated as the weighted average derived from the multi-scenario discounted cash flow model. 2 In prior periods the Group applied the average ASK growth per annum as a key assumption. Given the impact of COVID-19, the Group has presented ASKs as a proportion of the level of ASKs achieved in 2019, prior to the application of the terminal value calculation. Jet fuel price ($ per MT) Within 12 months 1-2 years 2-3 years 3 years and thereafter 2022 867 809 780 780 2021 690 673 659 659 Forecast ASKs reflect the range of ASKs as a percentage of the 2019 actual ASKs over the forecast period, based on planned network growth and taking into account management\u2019s expectation of the market. The long-term growth rate is calculated for each CGU, considering a number of data points: (i) industry publications; (ii) forecast weighted average exposure in each primary market using gross domestic product (GDP); and (iii) internal analysis regarding the long-term changes in consumer preferences and the effects on demand from the increased costs to the Group of climate change. The calculation of the long- term growth rate utilises a Base Case and a Downside Case growth rate, which is then weighted on the same basis as the cash flows detailed above of 70 per cent to the Base Case and 30 per cent to the Downside Case. The terminal value cash flows and long-term growth rate incorporate the impacts of climate change insofar as they can be determined (note 4). The airlines\u2019 network plans are reviewed annually as part of the three-year business plan preparation and reflect management\u2019s plans in response to specific market risk or opportunity. Pre-tax discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and underlying risks of its primary market. The discount rate calculation is based on the circumstances of the airline industry, the Group and the CGU. It is derived from the weighted average cost of capital (WACC). The WACC takes into consideration both debt and equity available to airlines. The cost of equity is derived from the expected return on investment by airline investors and the cost of debt is derived from both market data and industry gearing levels derived from comparable companies. CGU-specific risk is incorporated by applying individual beta factors which are evaluated annually based on available market data. The pre-tax discount rate reflects the timing of future tax flows. Jet fuel price assumptions are derived from forward price curves in the fourth quarter of each year and sourced externally. The cash flow forecasts reflect these price increases after taking into consideration the level of fuel derivatives and their associated prices that the Group has in place. As detailed above, the Group adjusts the final year of the three-year business plans to incorporate the medium-term impacts of climate change from the Group\u2019s Flightpath Net Zero climate strategy. These adjustments include the following key assumptions: (i) a 10 per cent level of SAF consumption out of the overall fuel mix with an assumed price of \u20ac2,275 per metric tonne; (ii) a kerosene tax of \u20ac325 per metric tonne on all intra-EU flights; (iii) for costs of carbon, prices of \u20ac130, \u20ac130, \u20ac175 and \u20ac25 for EU ETS allowances, Swiss ETS allowances, UK ETS allowances and CORSIA allowances, respectively, per tonne of CO 2 equivalents emitted; and (iv) the removal of all free ETS and CORSIA allowances. Basis for calculating recoverable amount The recoverable amounts of the Group\u2019s CGUs have been measured based on their value-in-use, which utilises a weighted average multi- scenario discounted cash flow model. The details of these scenarios are given in the going concern section of note 2, with a weighting of 70 per cent to the Base Case and 30 per cent to the Downside Case. Cash flow projections are based on the business plans approved by the relevant operating companies covering a three-year period. Cash flows extrapolated beyond the three-year period are projected to increase based on long-term growth rates. Cash flow projections are discounted using each CGU\u2019s pre-tax discount rate. Annually the relevant operating companies prepare and approve three-year business plans, and the Board approved the Group three-year business plan in the fourth quarter of the year. Adjustments have been made to the final year of the business plan cash flows to incorporate the impacts of climate change that the Group can reliably estimate at the reporting date. However, given the long-term nature of the Group\u2019s sustainability commitments, there are other aspects of these commitments that cannot be reliably estimated and accordingly have been excluded from the value-in-use calculations (refer to note 4). The business plan cash flows used in the value-in-use calculations also reflect all restructuring of the business where relevant that has been approved by the Board and which can be executed by management under existing labour agreements. Key assumptions The value-in-use calculations for each CGU reflect the ongoing uncertainty of the future implications of COVID-19 and the wider economic and geopolitical environments, including updated projected cash flows for activity from 2023 through to the end of 2025. For each of the Group\u2019s CGUs the key assumptions used in the value-in-use calculations are as follows: 2022 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 5-13 5-10 0-10 4-12 23-25 ASKs as a proportion of 2019 1,2 90-105 92-107 113-123 102-127 n/a Long-term growth rate 1.7 1.5 1.4 1.6 1.7 Pre-tax discount rate 10.4 11.2 12.8 10.1 13.4 2021 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 3-13 2-12 2-11 0-14 22-24 ASKs as a proportion of 2019 1,2 75-103 77-100 97-119 84-115 n/a Long-term growth rate 1.9 1.7 1.6 1.7 1.6 Pre-tax discount rate 11.8 11.4 11.1 10.1 12.0 1 ASKs as a proportion of 2019 and operating margin are both stated as the weighted average derived from the multi-scenario discounted cash flow model. 2 In prior periods the Group applied the average ASK growth per annum as a key assumption. Given the impact of COVID-19, the Group has presented ASKs as a proportion of the level of ASKs achieved in 2019, prior to the application of the terminal value calculation. Jet fuel price ($ per MT) Within 12 months 1-2 years 2-3 years 3 years and thereafter 2022 867 809 780 780 2021 690 673 659 659 Forecast ASKs reflect the range of ASKs as a percentage of the 2019 actual ASKs over the forecast period, based on planned network growth and taking into account management\u2019s expectation of the market. The long-term growth rate is calculated for each CGU, considering a number of data points: (i) industry publications; (ii) forecast weighted average exposure in each primary market using gross domestic product (GDP); and (iii) internal analysis regarding the long-term changes in consumer preferences and the effects on demand from the increased costs to the Group of climate change. The calculation of the long- term growth rate utilises a Base Case and a Downside Case growth rate, which is then weighted on the same basis as the cash flows detailed above of 70 per cent to the Base Case and 30 per cent to the Downside Case. The terminal value cash flows and long-term growth rate incorporate the impacts of climate change insofar as they can be determined (note 4). The airlines\u2019 network plans are reviewed annually as part of the three-year business plan preparation and reflect management\u2019s plans in response to specific market risk or opportunity. Pre-tax discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and underlying risks of its primary market. The discount rate calculation is based on the circumstances of the airline industry, the Group and the CGU. It is derived from the weighted average cost of capital (WACC). The WACC takes into consideration both debt and equity available to airlines. The cost of equity is derived from the expected return on investment by airline investors and the cost of debt is derived from both market data and industry gearing levels derived from comparable companies. CGU-specific risk is incorporated by applying individual beta factors which are evaluated annually based on available market data. The pre-tax discount rate reflects the timing of future tax flows. Jet fuel price assumptions are derived from forward price curves in the fourth quarter of each year and sourced externally. The cash flow forecasts reflect these price increases after taking into consideration the level of fuel derivatives and their associated prices that the Group has in place. As detailed above, the Group adjusts the final year of the three-year business plans to incorporate the medium-term impacts of climate change from the Group\u2019s Flightpath Net Zero climate strategy. These adjustments include the following key assumptions: (i) a 10 per cent level of SAF consumption out of the overall fuel mix with an assumed price of \u20ac2,275 per metric tonne; (ii) a kerosene tax of \u20ac325 per metric tonne on all intra-EU flights; (iii) for costs of carbon, prices of \u20ac130, \u20ac130, \u20ac175 and \u20ac25 for EU ETS allowances, Swiss ETS allowances, UK ETS allowances and CORSIA allowances, respectively, per tonne of CO 2 equivalents emitted; and (iv) the removal of all free ETS and CORSIA allowances. Summary of results At December 31, 2022 management reviewed the recoverable amount of each of the CGUs and concluded the recoverable amounts exceeded the carrying values. Reasonable possible changes in key assumptions, both individually and in combination, have been considered for each CGU, where applicable, which include reducing the operating margin by 2 percentage points in each year, ASKs by 5 percentage points in each year, long-term growth rates in the terminal value calculation to zero, increasing pre-tax discount rates by 2.5 percentage points, changing the weighting of the Base Case and the Downside Case to be 100 per cent weighted towards the Downside Case and increasing the fuel price (both jet fuel and SAF) by 45 per cent with no assumed cost recovery. Given the inherent uncertainty associated with the impact of climate change, these sensitivities represent a reasonably possible greater impact of climate change on the CGUs than that included in the impairment models. For the British Airways, Iberia, Vueling and Aer Lingus CGUs, while the recoverable amounts are estimated to exceed the carrying amounts by \u20ac15,432 million, \u20ac3,213 million, \u20ac1,606 million and \u20ac1,407 million, respectively, the recoverable amounts would be below the carrying amounts when applying reasonable possible changes, over the forecast period, in assumptions in each of the following scenarios: \u2022 British Airways: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 22 per cent; and (ii) if the fuel price had been 27 per cent higher without cost recovery; \u2022 Iberia: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 20 per cent; and (ii) if the fuel price had been 27 per cent higher without cost recovery; \u2022 Vueling: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 15 per cent; and (ii) if the fuel price had been 20 per cent higher without cost recovery; and \u2022 Aer Lingus: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 7 per cent; and (ii) if the fuel price had been 14 per cent higher without cost recovery. For the remainder of the reasonably possible changes in key assumptions applied to the British Airways, Iberia, Vueling and Aer Lingus CGUs and for all the reasonably possible changes in key assumptions applied to the IAG Loyalty CGU, no impairment arises. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-648": {
"value": "17 Intangible assets and impairment review a Intangible assets \u20ac million Goodwill Brand Customer loyalty programmes Landing rights 1 Software ETS assets 2 Other 2 Total Cost Balance at January 1, 2021 593 451 253 1,555 1,474 76 85 4,487 Additions \u2013 \u2013 \u2013 \u2013 149 33 1 183 Disposals \u2013 \u2013 \u2013 (6) (19) (49) \u2013 (74) Exchange movements 3 \u2013 \u2013 56 70 2 1 132 Balance at December 31, 2021 596 451 253 1,605 1,674 62 87 4,728 Additions \u2013 \u2013 \u2013 14 218 360 1 593 Disposals \u2013 \u2013 \u2013 (6) (52) (9) \u2013 (67) Exchange movements (1) \u2013 \u2013 (25) (34) (6) \u2013 (66) December 31, 2022 595 451 253 1,588 1,806 407 88 5,188 Amortisation and impairment Balance at January 1, 2021 249 \u2013 \u2013 132 836 \u2013 62 1,279 Amortisation charge for the year \u2013 \u2013 \u2013 6 167 \u2013 5 178 Disposals \u2013 \u2013 \u2013 \u2013 (13) \u2013 \u2013 (13) Exchange movements \u2013 \u2013 \u2013 4 42 \u2013 (1) 45 Balance at December 31, 2021 249 \u2013 \u2013 142 1,032 \u2013 66 1,489 Amortisation charge for the year \u2013 \u2013 \u2013 6 210 \u2013 2 218 Disposals \u2013 \u2013 \u2013 \u2013 (50) \u2013 \u2013 (50) Exchange movements \u2013 \u2013 \u2013 (2) (23) \u2013 \u2013 (25) December 31, 2022 249 \u2013 \u2013 146 1,169 \u2013 68 1,632 Net book values December 31, 2022 346 451 253 1,442 637 407 20 3,556 December 31, 2021 347 451 253 1,463 642 62 21 3,239 1 The net book value includes non-UK and non-EU based landing rights of \u20ac69 million (2021: \u20ac75 million) that have a definite life. The remaining average life of these landing rights is 13 years. 2 During 2022 the Group separated the ETS assets from Other intangible assets. This change resulted in an amount of \u20ac76 million and \u20ac62 million recorded within ETS assets at January 1, 2021 and January 1, 2022, respectively. There was no net change in total intangible assets. b Impairment review The carrying amounts of intangible assets with indefinite life and goodwill allocated to cash generating units (CGUs) of the Group are: \u20ac million Goodwill Landing rights Brand Customer loyalty programmes Total 2022 Iberia January 1 and December 31, 2022 \u2013 423 306 \u2013 729 British Airways January 1, 2022 47 809 \u2013 \u2013 856 Additions \u2013 14 \u2013 \u2013 14 Disposals \u2013 (6) \u2013 \u2013 (6) Exchange movements (1) (23) \u2013 \u2013 (24) December 31, 2022 46 794 \u2013 \u2013 840 Vueling January 1 and December 31, 2022 28 94 35 \u2013 157 Aer Lingus January 1 and December 31, 2022 272 62 110 \u2013 444 IAG Loyalty January 1 and December 31, 2022 \u2013 \u2013 \u2013 253 253 December 31, 2022 346 1,373 451 253 2,423 \u20ac million Goodwill Landing rights Brand Customer loyalty programmes Total 2021 Iberia January 1 and December 31, 2021 \u2013 423 306 \u2013 729 British Airways January 1, 2021 44 763 \u2013 \u2013 807 Disposals \u2013 (6) \u2013 \u2013 (6) Exchange movements 3 52 \u2013 \u2013 55 December 31, 2021 47 809 \u2013 \u2013 856 Vueling January 1 and December 31, 2021 28 94 35 \u2013 157 Aer Lingus January 1 and December 31, 2021 272 62 110 \u2013 444 IAG Loyalty January 1 and December 31, 2021 \u2013 \u2013 \u2013 253 253 December 31, 2021 347 1,388 451 253 2,439 Basis for calculating recoverable amount The recoverable amounts of the Group\u2019s CGUs have been measured based on their value-in-use, which utilises a weighted average multi- scenario discounted cash flow model. The details of these scenarios are given in the going concern section of note 2, with a weighting of 70 per cent to the Base Case and 30 per cent to the Downside Case. Cash flow projections are based on the business plans approved by the relevant operating companies covering a three-year period. Cash flows extrapolated beyond the three-year period are projected to increase based on long-term growth rates. Cash flow projections are discounted using each CGU\u2019s pre-tax discount rate. Annually the relevant operating companies prepare and approve three-year business plans, and the Board approved the Group three-year business plan in the fourth quarter of the year. Adjustments have been made to the final year of the business plan cash flows to incorporate the impacts of climate change that the Group can reliably estimate at the reporting date. However, given the long-term nature of the Group\u2019s sustainability commitments, there are other aspects of these commitments that cannot be reliably estimated and accordingly have been excluded from the value-in-use calculations (refer to note 4). The business plan cash flows used in the value-in-use calculations also reflect all restructuring of the business where relevant that has been approved by the Board and which can be executed by management under existing labour agreements. Key assumptions The value-in-use calculations for each CGU reflect the ongoing uncertainty of the future implications of COVID-19 and the wider economic and geopolitical environments, including updated projected cash flows for activity from 2023 through to the end of 2025. For each of the Group\u2019s CGUs the key assumptions used in the value-in-use calculations are as follows: 2022 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 5-13 5-10 0-10 4-12 23-25 ASKs as a proportion of 2019 1,2 90-105 92-107 113-123 102-127 n/a Long-term growth rate 1.7 1.5 1.4 1.6 1.7 Pre-tax discount rate 10.4 11.2 12.8 10.1 13.4 2021 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 3-13 2-12 2-11 0-14 22-24 ASKs as a proportion of 2019 1,2 75-103 77-100 97-119 84-115 n/a Long-term growth rate 1.9 1.7 1.6 1.7 1.6 Pre-tax discount rate 11.8 11.4 11.1 10.1 12.0 1 ASKs as a proportion of 2019 and operating margin are both stated as the weighted average derived from the multi-scenario discounted cash flow model. 2 In prior periods the Group applied the average ASK growth per annum as a key assumption. Given the impact of COVID-19, the Group has presented ASKs as a proportion of the level of ASKs achieved in 2019, prior to the application of the terminal value calculation. Jet fuel price ($ per MT) Within 12 months 1-2 years 2-3 years 3 years and thereafter 2022 867 809 780 780 2021 690 673 659 659 Forecast ASKs reflect the range of ASKs as a percentage of the 2019 actual ASKs over the forecast period, based on planned network growth and taking into account management\u2019s expectation of the market. The long-term growth rate is calculated for each CGU, considering a number of data points: (i) industry publications; (ii) forecast weighted average exposure in each primary market using gross domestic product (GDP); and (iii) internal analysis regarding the long-term changes in consumer preferences and the effects on demand from the increased costs to the Group of climate change. The calculation of the long- term growth rate utilises a Base Case and a Downside Case growth rate, which is then weighted on the same basis as the cash flows detailed above of 70 per cent to the Base Case and 30 per cent to the Downside Case. The terminal value cash flows and long-term growth rate incorporate the impacts of climate change insofar as they can be determined (note 4). The airlines\u2019 network plans are reviewed annually as part of the three-year business plan preparation and reflect management\u2019s plans in response to specific market risk or opportunity. Pre-tax discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and underlying risks of its primary market. The discount rate calculation is based on the circumstances of the airline industry, the Group and the CGU. It is derived from the weighted average cost of capital (WACC). The WACC takes into consideration both debt and equity available to airlines. The cost of equity is derived from the expected return on investment by airline investors and the cost of debt is derived from both market data and industry gearing levels derived from comparable companies. CGU-specific risk is incorporated by applying individual beta factors which are evaluated annually based on available market data. The pre-tax discount rate reflects the timing of future tax flows. Jet fuel price assumptions are derived from forward price curves in the fourth quarter of each year and sourced externally. The cash flow forecasts reflect these price increases after taking into consideration the level of fuel derivatives and their associated prices that the Group has in place. As detailed above, the Group adjusts the final year of the three-year business plans to incorporate the medium-term impacts of climate change from the Group\u2019s Flightpath Net Zero climate strategy. These adjustments include the following key assumptions: (i) a 10 per cent level of SAF consumption out of the overall fuel mix with an assumed price of \u20ac2,275 per metric tonne; (ii) a kerosene tax of \u20ac325 per metric tonne on all intra-EU flights; (iii) for costs of carbon, prices of \u20ac130, \u20ac130, \u20ac175 and \u20ac25 for EU ETS allowances, Swiss ETS allowances, UK ETS allowances and CORSIA allowances, respectively, per tonne of CO 2 equivalents emitted; and (iv) the removal of all free ETS and CORSIA allowances. Basis for calculating recoverable amount The recoverable amounts of the Group\u2019s CGUs have been measured based on their value-in-use, which utilises a weighted average multi- scenario discounted cash flow model. The details of these scenarios are given in the going concern section of note 2, with a weighting of 70 per cent to the Base Case and 30 per cent to the Downside Case. Cash flow projections are based on the business plans approved by the relevant operating companies covering a three-year period. Cash flows extrapolated beyond the three-year period are projected to increase based on long-term growth rates. Cash flow projections are discounted using each CGU\u2019s pre-tax discount rate. Annually the relevant operating companies prepare and approve three-year business plans, and the Board approved the Group three-year business plan in the fourth quarter of the year. Adjustments have been made to the final year of the business plan cash flows to incorporate the impacts of climate change that the Group can reliably estimate at the reporting date. However, given the long-term nature of the Group\u2019s sustainability commitments, there are other aspects of these commitments that cannot be reliably estimated and accordingly have been excluded from the value-in-use calculations (refer to note 4). The business plan cash flows used in the value-in-use calculations also reflect all restructuring of the business where relevant that has been approved by the Board and which can be executed by management under existing labour agreements. Key assumptions The value-in-use calculations for each CGU reflect the ongoing uncertainty of the future implications of COVID-19 and the wider economic and geopolitical environments, including updated projected cash flows for activity from 2023 through to the end of 2025. For each of the Group\u2019s CGUs the key assumptions used in the value-in-use calculations are as follows: 2022 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 5-13 5-10 0-10 4-12 23-25 ASKs as a proportion of 2019 1,2 90-105 92-107 113-123 102-127 n/a Long-term growth rate 1.7 1.5 1.4 1.6 1.7 Pre-tax discount rate 10.4 11.2 12.8 10.1 13.4 2021 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 3-13 2-12 2-11 0-14 22-24 ASKs as a proportion of 2019 1,2 75-103 77-100 97-119 84-115 n/a Long-term growth rate 1.9 1.7 1.6 1.7 1.6 Pre-tax discount rate 11.8 11.4 11.1 10.1 12.0 1 ASKs as a proportion of 2019 and operating margin are both stated as the weighted average derived from the multi-scenario discounted cash flow model. 2 In prior periods the Group applied the average ASK growth per annum as a key assumption. Given the impact of COVID-19, the Group has presented ASKs as a proportion of the level of ASKs achieved in 2019, prior to the application of the terminal value calculation. Jet fuel price ($ per MT) Within 12 months 1-2 years 2-3 years 3 years and thereafter 2022 867 809 780 780 2021 690 673 659 659 Forecast ASKs reflect the range of ASKs as a percentage of the 2019 actual ASKs over the forecast period, based on planned network growth and taking into account management\u2019s expectation of the market. The long-term growth rate is calculated for each CGU, considering a number of data points: (i) industry publications; (ii) forecast weighted average exposure in each primary market using gross domestic product (GDP); and (iii) internal analysis regarding the long-term changes in consumer preferences and the effects on demand from the increased costs to the Group of climate change. The calculation of the long- term growth rate utilises a Base Case and a Downside Case growth rate, which is then weighted on the same basis as the cash flows detailed above of 70 per cent to the Base Case and 30 per cent to the Downside Case. The terminal value cash flows and long-term growth rate incorporate the impacts of climate change insofar as they can be determined (note 4). The airlines\u2019 network plans are reviewed annually as part of the three-year business plan preparation and reflect management\u2019s plans in response to specific market risk or opportunity. Pre-tax discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and underlying risks of its primary market. The discount rate calculation is based on the circumstances of the airline industry, the Group and the CGU. It is derived from the weighted average cost of capital (WACC). The WACC takes into consideration both debt and equity available to airlines. The cost of equity is derived from the expected return on investment by airline investors and the cost of debt is derived from both market data and industry gearing levels derived from comparable companies. CGU-specific risk is incorporated by applying individual beta factors which are evaluated annually based on available market data. The pre-tax discount rate reflects the timing of future tax flows. Jet fuel price assumptions are derived from forward price curves in the fourth quarter of each year and sourced externally. The cash flow forecasts reflect these price increases after taking into consideration the level of fuel derivatives and their associated prices that the Group has in place. As detailed above, the Group adjusts the final year of the three-year business plans to incorporate the medium-term impacts of climate change from the Group\u2019s Flightpath Net Zero climate strategy. These adjustments include the following key assumptions: (i) a 10 per cent level of SAF consumption out of the overall fuel mix with an assumed price of \u20ac2,275 per metric tonne; (ii) a kerosene tax of \u20ac325 per metric tonne on all intra-EU flights; (iii) for costs of carbon, prices of \u20ac130, \u20ac130, \u20ac175 and \u20ac25 for EU ETS allowances, Swiss ETS allowances, UK ETS allowances and CORSIA allowances, respectively, per tonne of CO 2 equivalents emitted; and (iv) the removal of all free ETS and CORSIA allowances. Summary of results At December 31, 2022 management reviewed the recoverable amount of each of the CGUs and concluded the recoverable amounts exceeded the carrying values. Reasonable possible changes in key assumptions, both individually and in combination, have been considered for each CGU, where applicable, which include reducing the operating margin by 2 percentage points in each year, ASKs by 5 percentage points in each year, long-term growth rates in the terminal value calculation to zero, increasing pre-tax discount rates by 2.5 percentage points, changing the weighting of the Base Case and the Downside Case to be 100 per cent weighted towards the Downside Case and increasing the fuel price (both jet fuel and SAF) by 45 per cent with no assumed cost recovery. Given the inherent uncertainty associated with the impact of climate change, these sensitivities represent a reasonably possible greater impact of climate change on the CGUs than that included in the impairment models. For the British Airways, Iberia, Vueling and Aer Lingus CGUs, while the recoverable amounts are estimated to exceed the carrying amounts by \u20ac15,432 million, \u20ac3,213 million, \u20ac1,606 million and \u20ac1,407 million, respectively, the recoverable amounts would be below the carrying amounts when applying reasonable possible changes, over the forecast period, in assumptions in each of the following scenarios: \u2022 British Airways: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 22 per cent; and (ii) if the fuel price had been 27 per cent higher without cost recovery; \u2022 Iberia: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 20 per cent; and (ii) if the fuel price had been 27 per cent higher without cost recovery; \u2022 Vueling: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 15 per cent; and (ii) if the fuel price had been 20 per cent higher without cost recovery; and \u2022 Aer Lingus: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 7 per cent; and (ii) if the fuel price had been 14 per cent higher without cost recovery. For the remainder of the reasonably possible changes in key assumptions applied to the British Airways, Iberia, Vueling and Aer Lingus CGUs and for all the reasonably possible changes in key assumptions applied to the IAG Loyalty CGU, no impairment arises. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-620": {
"value": "17 Intangible assets and impairment review a Intangible assets \u20ac million Goodwill Brand Customer loyalty programmes Landing rights 1 Software ETS assets 2 Other 2 Total Cost Balance at January 1, 2021 593 451 253 1,555 1,474 76 85 4,487 Additions \u2013 \u2013 \u2013 \u2013 149 33 1 183 Disposals \u2013 \u2013 \u2013 (6) (19) (49) \u2013 (74) Exchange movements 3 \u2013 \u2013 56 70 2 1 132 Balance at December 31, 2021 596 451 253 1,605 1,674 62 87 4,728 Additions \u2013 \u2013 \u2013 14 218 360 1 593 Disposals \u2013 \u2013 \u2013 (6) (52) (9) \u2013 (67) Exchange movements (1) \u2013 \u2013 (25) (34) (6) \u2013 (66) December 31, 2022 595 451 253 1,588 1,806 407 88 5,188 Amortisation and impairment Balance at January 1, 2021 249 \u2013 \u2013 132 836 \u2013 62 1,279 Amortisation charge for the year \u2013 \u2013 \u2013 6 167 \u2013 5 178 Disposals \u2013 \u2013 \u2013 \u2013 (13) \u2013 \u2013 (13) Exchange movements \u2013 \u2013 \u2013 4 42 \u2013 (1) 45 Balance at December 31, 2021 249 \u2013 \u2013 142 1,032 \u2013 66 1,489 Amortisation charge for the year \u2013 \u2013 \u2013 6 210 \u2013 2 218 Disposals \u2013 \u2013 \u2013 \u2013 (50) \u2013 \u2013 (50) Exchange movements \u2013 \u2013 \u2013 (2) (23) \u2013 \u2013 (25) December 31, 2022 249 \u2013 \u2013 146 1,169 \u2013 68 1,632 Net book values December 31, 2022 346 451 253 1,442 637 407 20 3,556 December 31, 2021 347 451 253 1,463 642 62 21 3,239 1 The net book value includes non-UK and non-EU based landing rights of \u20ac69 million (2021: \u20ac75 million) that have a definite life. The remaining average life of these landing rights is 13 years. 2 During 2022 the Group separated the ETS assets from Other intangible assets. This change resulted in an amount of \u20ac76 million and \u20ac62 million recorded within ETS assets at January 1, 2021 and January 1, 2022, respectively. There was no net change in total intangible assets. b Impairment review The carrying amounts of intangible assets with indefinite life and goodwill allocated to cash generating units (CGUs) of the Group are: \u20ac million Goodwill Landing rights Brand Customer loyalty programmes Total 2022 Iberia January 1 and December 31, 2022 \u2013 423 306 \u2013 729 British Airways January 1, 2022 47 809 \u2013 \u2013 856 Additions \u2013 14 \u2013 \u2013 14 Disposals \u2013 (6) \u2013 \u2013 (6) Exchange movements (1) (23) \u2013 \u2013 (24) December 31, 2022 46 794 \u2013 \u2013 840 Vueling January 1 and December 31, 2022 28 94 35 \u2013 157 Aer Lingus January 1 and December 31, 2022 272 62 110 \u2013 444 IAG Loyalty January 1 and December 31, 2022 \u2013 \u2013 \u2013 253 253 December 31, 2022 346 1,373 451 253 2,423 \u20ac million Goodwill Landing rights Brand Customer loyalty programmes Total 2021 Iberia January 1 and December 31, 2021 \u2013 423 306 \u2013 729 British Airways January 1, 2021 44 763 \u2013 \u2013 807 Disposals \u2013 (6) \u2013 \u2013 (6) Exchange movements 3 52 \u2013 \u2013 55 December 31, 2021 47 809 \u2013 \u2013 856 Vueling January 1 and December 31, 2021 28 94 35 \u2013 157 Aer Lingus January 1 and December 31, 2021 272 62 110 \u2013 444 IAG Loyalty January 1 and December 31, 2021 \u2013 \u2013 \u2013 253 253 December 31, 2021 347 1,388 451 253 2,439 Basis for calculating recoverable amount The recoverable amounts of the Group\u2019s CGUs have been measured based on their value-in-use, which utilises a weighted average multi- scenario discounted cash flow model. The details of these scenarios are given in the going concern section of note 2, with a weighting of 70 per cent to the Base Case and 30 per cent to the Downside Case. Cash flow projections are based on the business plans approved by the relevant operating companies covering a three-year period. Cash flows extrapolated beyond the three-year period are projected to increase based on long-term growth rates. Cash flow projections are discounted using each CGU\u2019s pre-tax discount rate. Annually the relevant operating companies prepare and approve three-year business plans, and the Board approved the Group three-year business plan in the fourth quarter of the year. Adjustments have been made to the final year of the business plan cash flows to incorporate the impacts of climate change that the Group can reliably estimate at the reporting date. However, given the long-term nature of the Group\u2019s sustainability commitments, there are other aspects of these commitments that cannot be reliably estimated and accordingly have been excluded from the value-in-use calculations (refer to note 4). The business plan cash flows used in the value-in-use calculations also reflect all restructuring of the business where relevant that has been approved by the Board and which can be executed by management under existing labour agreements. Key assumptions The value-in-use calculations for each CGU reflect the ongoing uncertainty of the future implications of COVID-19 and the wider economic and geopolitical environments, including updated projected cash flows for activity from 2023 through to the end of 2025. For each of the Group\u2019s CGUs the key assumptions used in the value-in-use calculations are as follows: 2022 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 5-13 5-10 0-10 4-12 23-25 ASKs as a proportion of 2019 1,2 90-105 92-107 113-123 102-127 n/a Long-term growth rate 1.7 1.5 1.4 1.6 1.7 Pre-tax discount rate 10.4 11.2 12.8 10.1 13.4 2021 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 3-13 2-12 2-11 0-14 22-24 ASKs as a proportion of 2019 1,2 75-103 77-100 97-119 84-115 n/a Long-term growth rate 1.9 1.7 1.6 1.7 1.6 Pre-tax discount rate 11.8 11.4 11.1 10.1 12.0 1 ASKs as a proportion of 2019 and operating margin are both stated as the weighted average derived from the multi-scenario discounted cash flow model. 2 In prior periods the Group applied the average ASK growth per annum as a key assumption. Given the impact of COVID-19, the Group has presented ASKs as a proportion of the level of ASKs achieved in 2019, prior to the application of the terminal value calculation. Jet fuel price ($ per MT) Within 12 months 1-2 years 2-3 years 3 years and thereafter 2022 867 809 780 780 2021 690 673 659 659 Forecast ASKs reflect the range of ASKs as a percentage of the 2019 actual ASKs over the forecast period, based on planned network growth and taking into account management\u2019s expectation of the market. The long-term growth rate is calculated for each CGU, considering a number of data points: (i) industry publications; (ii) forecast weighted average exposure in each primary market using gross domestic product (GDP); and (iii) internal analysis regarding the long-term changes in consumer preferences and the effects on demand from the increased costs to the Group of climate change. The calculation of the long- term growth rate utilises a Base Case and a Downside Case growth rate, which is then weighted on the same basis as the cash flows detailed above of 70 per cent to the Base Case and 30 per cent to the Downside Case. The terminal value cash flows and long-term growth rate incorporate the impacts of climate change insofar as they can be determined (note 4). The airlines\u2019 network plans are reviewed annually as part of the three-year business plan preparation and reflect management\u2019s plans in response to specific market risk or opportunity. Pre-tax discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and underlying risks of its primary market. The discount rate calculation is based on the circumstances of the airline industry, the Group and the CGU. It is derived from the weighted average cost of capital (WACC). The WACC takes into consideration both debt and equity available to airlines. The cost of equity is derived from the expected return on investment by airline investors and the cost of debt is derived from both market data and industry gearing levels derived from comparable companies. CGU-specific risk is incorporated by applying individual beta factors which are evaluated annually based on available market data. The pre-tax discount rate reflects the timing of future tax flows. Jet fuel price assumptions are derived from forward price curves in the fourth quarter of each year and sourced externally. The cash flow forecasts reflect these price increases after taking into consideration the level of fuel derivatives and their associated prices that the Group has in place. As detailed above, the Group adjusts the final year of the three-year business plans to incorporate the medium-term impacts of climate change from the Group\u2019s Flightpath Net Zero climate strategy. These adjustments include the following key assumptions: (i) a 10 per cent level of SAF consumption out of the overall fuel mix with an assumed price of \u20ac2,275 per metric tonne; (ii) a kerosene tax of \u20ac325 per metric tonne on all intra-EU flights; (iii) for costs of carbon, prices of \u20ac130, \u20ac130, \u20ac175 and \u20ac25 for EU ETS allowances, Swiss ETS allowances, UK ETS allowances and CORSIA allowances, respectively, per tonne of CO 2 equivalents emitted; and (iv) the removal of all free ETS and CORSIA allowances. Basis for calculating recoverable amount The recoverable amounts of the Group\u2019s CGUs have been measured based on their value-in-use, which utilises a weighted average multi- scenario discounted cash flow model. The details of these scenarios are given in the going concern section of note 2, with a weighting of 70 per cent to the Base Case and 30 per cent to the Downside Case. Cash flow projections are based on the business plans approved by the relevant operating companies covering a three-year period. Cash flows extrapolated beyond the three-year period are projected to increase based on long-term growth rates. Cash flow projections are discounted using each CGU\u2019s pre-tax discount rate. Annually the relevant operating companies prepare and approve three-year business plans, and the Board approved the Group three-year business plan in the fourth quarter of the year. Adjustments have been made to the final year of the business plan cash flows to incorporate the impacts of climate change that the Group can reliably estimate at the reporting date. However, given the long-term nature of the Group\u2019s sustainability commitments, there are other aspects of these commitments that cannot be reliably estimated and accordingly have been excluded from the value-in-use calculations (refer to note 4). The business plan cash flows used in the value-in-use calculations also reflect all restructuring of the business where relevant that has been approved by the Board and which can be executed by management under existing labour agreements. Key assumptions The value-in-use calculations for each CGU reflect the ongoing uncertainty of the future implications of COVID-19 and the wider economic and geopolitical environments, including updated projected cash flows for activity from 2023 through to the end of 2025. For each of the Group\u2019s CGUs the key assumptions used in the value-in-use calculations are as follows: 2022 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 5-13 5-10 0-10 4-12 23-25 ASKs as a proportion of 2019 1,2 90-105 92-107 113-123 102-127 n/a Long-term growth rate 1.7 1.5 1.4 1.6 1.7 Pre-tax discount rate 10.4 11.2 12.8 10.1 13.4 2021 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 3-13 2-12 2-11 0-14 22-24 ASKs as a proportion of 2019 1,2 75-103 77-100 97-119 84-115 n/a Long-term growth rate 1.9 1.7 1.6 1.7 1.6 Pre-tax discount rate 11.8 11.4 11.1 10.1 12.0 1 ASKs as a proportion of 2019 and operating margin are both stated as the weighted average derived from the multi-scenario discounted cash flow model. 2 In prior periods the Group applied the average ASK growth per annum as a key assumption. Given the impact of COVID-19, the Group has presented ASKs as a proportion of the level of ASKs achieved in 2019, prior to the application of the terminal value calculation. Jet fuel price ($ per MT) Within 12 months 1-2 years 2-3 years 3 years and thereafter 2022 867 809 780 780 2021 690 673 659 659 Forecast ASKs reflect the range of ASKs as a percentage of the 2019 actual ASKs over the forecast period, based on planned network growth and taking into account management\u2019s expectation of the market. The long-term growth rate is calculated for each CGU, considering a number of data points: (i) industry publications; (ii) forecast weighted average exposure in each primary market using gross domestic product (GDP); and (iii) internal analysis regarding the long-term changes in consumer preferences and the effects on demand from the increased costs to the Group of climate change. The calculation of the long- term growth rate utilises a Base Case and a Downside Case growth rate, which is then weighted on the same basis as the cash flows detailed above of 70 per cent to the Base Case and 30 per cent to the Downside Case. The terminal value cash flows and long-term growth rate incorporate the impacts of climate change insofar as they can be determined (note 4). The airlines\u2019 network plans are reviewed annually as part of the three-year business plan preparation and reflect management\u2019s plans in response to specific market risk or opportunity. Pre-tax discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and underlying risks of its primary market. The discount rate calculation is based on the circumstances of the airline industry, the Group and the CGU. It is derived from the weighted average cost of capital (WACC). The WACC takes into consideration both debt and equity available to airlines. The cost of equity is derived from the expected return on investment by airline investors and the cost of debt is derived from both market data and industry gearing levels derived from comparable companies. CGU-specific risk is incorporated by applying individual beta factors which are evaluated annually based on available market data. The pre-tax discount rate reflects the timing of future tax flows. Jet fuel price assumptions are derived from forward price curves in the fourth quarter of each year and sourced externally. The cash flow forecasts reflect these price increases after taking into consideration the level of fuel derivatives and their associated prices that the Group has in place. As detailed above, the Group adjusts the final year of the three-year business plans to incorporate the medium-term impacts of climate change from the Group\u2019s Flightpath Net Zero climate strategy. These adjustments include the following key assumptions: (i) a 10 per cent level of SAF consumption out of the overall fuel mix with an assumed price of \u20ac2,275 per metric tonne; (ii) a kerosene tax of \u20ac325 per metric tonne on all intra-EU flights; (iii) for costs of carbon, prices of \u20ac130, \u20ac130, \u20ac175 and \u20ac25 for EU ETS allowances, Swiss ETS allowances, UK ETS allowances and CORSIA allowances, respectively, per tonne of CO 2 equivalents emitted; and (iv) the removal of all free ETS and CORSIA allowances. Summary of results At December 31, 2022 management reviewed the recoverable amount of each of the CGUs and concluded the recoverable amounts exceeded the carrying values. Reasonable possible changes in key assumptions, both individually and in combination, have been considered for each CGU, where applicable, which include reducing the operating margin by 2 percentage points in each year, ASKs by 5 percentage points in each year, long-term growth rates in the terminal value calculation to zero, increasing pre-tax discount rates by 2.5 percentage points, changing the weighting of the Base Case and the Downside Case to be 100 per cent weighted towards the Downside Case and increasing the fuel price (both jet fuel and SAF) by 45 per cent with no assumed cost recovery. Given the inherent uncertainty associated with the impact of climate change, these sensitivities represent a reasonably possible greater impact of climate change on the CGUs than that included in the impairment models. For the British Airways, Iberia, Vueling and Aer Lingus CGUs, while the recoverable amounts are estimated to exceed the carrying amounts by \u20ac15,432 million, \u20ac3,213 million, \u20ac1,606 million and \u20ac1,407 million, respectively, the recoverable amounts would be below the carrying amounts when applying reasonable possible changes, over the forecast period, in assumptions in each of the following scenarios: \u2022 British Airways: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 22 per cent; and (ii) if the fuel price had been 27 per cent higher without cost recovery; \u2022 Iberia: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 20 per cent; and (ii) if the fuel price had been 27 per cent higher without cost recovery; \u2022 Vueling: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 15 per cent; and (ii) if the fuel price had been 20 per cent higher without cost recovery; and \u2022 Aer Lingus: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 7 per cent; and (ii) if the fuel price had been 14 per cent higher without cost recovery. For the remainder of the reasonably possible changes in key assumptions applied to the British Airways, Iberia, Vueling and Aer Lingus CGUs and for all the reasonably possible changes in key assumptions applied to the IAG Loyalty CGU, no impairment arises. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-683": {
"value": "b Impairment review The carrying amounts of intangible assets with indefinite life and goodwill allocated to cash generating units (CGUs) of the Group are: \u20ac million Goodwill Landing rights Brand Customer loyalty programmes Total 2022 Iberia January 1 and December 31, 2022 \u2013 423 306 \u2013 729 British Airways January 1, 2022 47 809 \u2013 \u2013 856 Additions \u2013 14 \u2013 \u2013 14 Disposals \u2013 (6) \u2013 \u2013 (6) Exchange movements (1) (23) \u2013 \u2013 (24) December 31, 2022 46 794 \u2013 \u2013 840 Vueling January 1 and December 31, 2022 28 94 35 \u2013 157 Aer Lingus January 1 and December 31, 2022 272 62 110 \u2013 444 IAG Loyalty January 1 and December 31, 2022 \u2013 \u2013 \u2013 253 253 December 31, 2022 346 1,373 451 253 2,423 \u20ac million Goodwill Landing rights Brand Customer loyalty programmes Total 2021 Iberia January 1 and December 31, 2021 \u2013 423 306 \u2013 729 British Airways January 1, 2021 44 763 \u2013 \u2013 807 Disposals \u2013 (6) \u2013 \u2013 (6) Exchange movements 3 52 \u2013 \u2013 55 December 31, 2021 47 809 \u2013 \u2013 856 Vueling January 1 and December 31, 2021 28 94 35 \u2013 157 Aer Lingus January 1 and December 31, 2021 272 62 110 \u2013 444 IAG Loyalty January 1 and December 31, 2021 \u2013 \u2013 \u2013 253 253 December 31, 2021 347 1,388 451 253 2,439 Basis for calculating recoverable amount The recoverable amounts of the Group\u2019s CGUs have been measured based on their value-in-use, which utilises a weighted average multi- scenario discounted cash flow model. The details of these scenarios are given in the going concern section of note 2, with a weighting of 70 per cent to the Base Case and 30 per cent to the Downside Case. Cash flow projections are based on the business plans approved by the relevant operating companies covering a three-year period. Cash flows extrapolated beyond the three-year period are projected to increase based on long-term growth rates. Cash flow projections are discounted using each CGU\u2019s pre-tax discount rate. Annually the relevant operating companies prepare and approve three-year business plans, and the Board approved the Group three-year business plan in the fourth quarter of the year. Adjustments have been made to the final year of the business plan cash flows to incorporate the impacts of climate change that the Group can reliably estimate at the reporting date. However, given the long-term nature of the Group\u2019s sustainability commitments, there are other aspects of these commitments that cannot be reliably estimated and accordingly have been excluded from the value-in-use calculations (refer to note 4). The business plan cash flows used in the value-in-use calculations also reflect all restructuring of the business where relevant that has been approved by the Board and which can be executed by management under existing labour agreements. Key assumptions The value-in-use calculations for each CGU reflect the ongoing uncertainty of the future implications of COVID-19 and the wider economic and geopolitical environments, including updated projected cash flows for activity from 2023 through to the end of 2025. For each of the Group\u2019s CGUs the key assumptions used in the value-in-use calculations are as follows: 2022 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 5-13 5-10 0-10 4-12 23-25 ASKs as a proportion of 2019 1,2 90-105 92-107 113-123 102-127 n/a Long-term growth rate 1.7 1.5 1.4 1.6 1.7 Pre-tax discount rate 10.4 11.2 12.8 10.1 13.4 2021 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 3-13 2-12 2-11 0-14 22-24 ASKs as a proportion of 2019 1,2 75-103 77-100 97-119 84-115 n/a Long-term growth rate 1.9 1.7 1.6 1.7 1.6 Pre-tax discount rate 11.8 11.4 11.1 10.1 12.0 1 ASKs as a proportion of 2019 and operating margin are both stated as the weighted average derived from the multi-scenario discounted cash flow model. 2 In prior periods the Group applied the average ASK growth per annum as a key assumption. Given the impact of COVID-19, the Group has presented ASKs as a proportion of the level of ASKs achieved in 2019, prior to the application of the terminal value calculation. Jet fuel price ($ per MT) Within 12 months 1-2 years 2-3 years 3 years and thereafter 2022 867 809 780 780 2021 690 673 659 659 Forecast ASKs reflect the range of ASKs as a percentage of the 2019 actual ASKs over the forecast period, based on planned network growth and taking into account management\u2019s expectation of the market. The long-term growth rate is calculated for each CGU, considering a number of data points: (i) industry publications; (ii) forecast weighted average exposure in each primary market using gross domestic product (GDP); and (iii) internal analysis regarding the long-term changes in consumer preferences and the effects on demand from the increased costs to the Group of climate change. The calculation of the long- term growth rate utilises a Base Case and a Downside Case growth rate, which is then weighted on the same basis as the cash flows detailed above of 70 per cent to the Base Case and 30 per cent to the Downside Case. The terminal value cash flows and long-term growth rate incorporate the impacts of climate change insofar as they can be determined (note 4). The airlines\u2019 network plans are reviewed annually as part of the three-year business plan preparation and reflect management\u2019s plans in response to specific market risk or opportunity. Pre-tax discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and underlying risks of its primary market. The discount rate calculation is based on the circumstances of the airline industry, the Group and the CGU. It is derived from the weighted average cost of capital (WACC). The WACC takes into consideration both debt and equity available to airlines. The cost of equity is derived from the expected return on investment by airline investors and the cost of debt is derived from both market data and industry gearing levels derived from comparable companies. CGU-specific risk is incorporated by applying individual beta factors which are evaluated annually based on available market data. The pre-tax discount rate reflects the timing of future tax flows. Jet fuel price assumptions are derived from forward price curves in the fourth quarter of each year and sourced externally. The cash flow forecasts reflect these price increases after taking into consideration the level of fuel derivatives and their associated prices that the Group has in place. As detailed above, the Group adjusts the final year of the three-year business plans to incorporate the medium-term impacts of climate change from the Group\u2019s Flightpath Net Zero climate strategy. These adjustments include the following key assumptions: (i) a 10 per cent level of SAF consumption out of the overall fuel mix with an assumed price of \u20ac2,275 per metric tonne; (ii) a kerosene tax of \u20ac325 per metric tonne on all intra-EU flights; (iii) for costs of carbon, prices of \u20ac130, \u20ac130, \u20ac175 and \u20ac25 for EU ETS allowances, Swiss ETS allowances, UK ETS allowances and CORSIA allowances, respectively, per tonne of CO 2 equivalents emitted; and (iv) the removal of all free ETS and CORSIA allowances. Basis for calculating recoverable amount The recoverable amounts of the Group\u2019s CGUs have been measured based on their value-in-use, which utilises a weighted average multi- scenario discounted cash flow model. The details of these scenarios are given in the going concern section of note 2, with a weighting of 70 per cent to the Base Case and 30 per cent to the Downside Case. Cash flow projections are based on the business plans approved by the relevant operating companies covering a three-year period. Cash flows extrapolated beyond the three-year period are projected to increase based on long-term growth rates. Cash flow projections are discounted using each CGU\u2019s pre-tax discount rate. Annually the relevant operating companies prepare and approve three-year business plans, and the Board approved the Group three-year business plan in the fourth quarter of the year. Adjustments have been made to the final year of the business plan cash flows to incorporate the impacts of climate change that the Group can reliably estimate at the reporting date. However, given the long-term nature of the Group\u2019s sustainability commitments, there are other aspects of these commitments that cannot be reliably estimated and accordingly have been excluded from the value-in-use calculations (refer to note 4). The business plan cash flows used in the value-in-use calculations also reflect all restructuring of the business where relevant that has been approved by the Board and which can be executed by management under existing labour agreements. Key assumptions The value-in-use calculations for each CGU reflect the ongoing uncertainty of the future implications of COVID-19 and the wider economic and geopolitical environments, including updated projected cash flows for activity from 2023 through to the end of 2025. For each of the Group\u2019s CGUs the key assumptions used in the value-in-use calculations are as follows: 2022 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 5-13 5-10 0-10 4-12 23-25 ASKs as a proportion of 2019 1,2 90-105 92-107 113-123 102-127 n/a Long-term growth rate 1.7 1.5 1.4 1.6 1.7 Pre-tax discount rate 10.4 11.2 12.8 10.1 13.4 2021 Per cent British Airways Iberia Vueling Aer Lingus IAG Loyalty Operating margin 1 3-13 2-12 2-11 0-14 22-24 ASKs as a proportion of 2019 1,2 75-103 77-100 97-119 84-115 n/a Long-term growth rate 1.9 1.7 1.6 1.7 1.6 Pre-tax discount rate 11.8 11.4 11.1 10.1 12.0 1 ASKs as a proportion of 2019 and operating margin are both stated as the weighted average derived from the multi-scenario discounted cash flow model. 2 In prior periods the Group applied the average ASK growth per annum as a key assumption. Given the impact of COVID-19, the Group has presented ASKs as a proportion of the level of ASKs achieved in 2019, prior to the application of the terminal value calculation. Jet fuel price ($ per MT) Within 12 months 1-2 years 2-3 years 3 years and thereafter 2022 867 809 780 780 2021 690 673 659 659 Forecast ASKs reflect the range of ASKs as a percentage of the 2019 actual ASKs over the forecast period, based on planned network growth and taking into account management\u2019s expectation of the market. The long-term growth rate is calculated for each CGU, considering a number of data points: (i) industry publications; (ii) forecast weighted average exposure in each primary market using gross domestic product (GDP); and (iii) internal analysis regarding the long-term changes in consumer preferences and the effects on demand from the increased costs to the Group of climate change. The calculation of the long- term growth rate utilises a Base Case and a Downside Case growth rate, which is then weighted on the same basis as the cash flows detailed above of 70 per cent to the Base Case and 30 per cent to the Downside Case. The terminal value cash flows and long-term growth rate incorporate the impacts of climate change insofar as they can be determined (note 4). The airlines\u2019 network plans are reviewed annually as part of the three-year business plan preparation and reflect management\u2019s plans in response to specific market risk or opportunity. Pre-tax discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and underlying risks of its primary market. The discount rate calculation is based on the circumstances of the airline industry, the Group and the CGU. It is derived from the weighted average cost of capital (WACC). The WACC takes into consideration both debt and equity available to airlines. The cost of equity is derived from the expected return on investment by airline investors and the cost of debt is derived from both market data and industry gearing levels derived from comparable companies. CGU-specific risk is incorporated by applying individual beta factors which are evaluated annually based on available market data. The pre-tax discount rate reflects the timing of future tax flows. Jet fuel price assumptions are derived from forward price curves in the fourth quarter of each year and sourced externally. The cash flow forecasts reflect these price increases after taking into consideration the level of fuel derivatives and their associated prices that the Group has in place. As detailed above, the Group adjusts the final year of the three-year business plans to incorporate the medium-term impacts of climate change from the Group\u2019s Flightpath Net Zero climate strategy. These adjustments include the following key assumptions: (i) a 10 per cent level of SAF consumption out of the overall fuel mix with an assumed price of \u20ac2,275 per metric tonne; (ii) a kerosene tax of \u20ac325 per metric tonne on all intra-EU flights; (iii) for costs of carbon, prices of \u20ac130, \u20ac130, \u20ac175 and \u20ac25 for EU ETS allowances, Swiss ETS allowances, UK ETS allowances and CORSIA allowances, respectively, per tonne of CO 2 equivalents emitted; and (iv) the removal of all free ETS and CORSIA allowances. Summary of results At December 31, 2022 management reviewed the recoverable amount of each of the CGUs and concluded the recoverable amounts exceeded the carrying values. Reasonable possible changes in key assumptions, both individually and in combination, have been considered for each CGU, where applicable, which include reducing the operating margin by 2 percentage points in each year, ASKs by 5 percentage points in each year, long-term growth rates in the terminal value calculation to zero, increasing pre-tax discount rates by 2.5 percentage points, changing the weighting of the Base Case and the Downside Case to be 100 per cent weighted towards the Downside Case and increasing the fuel price (both jet fuel and SAF) by 45 per cent with no assumed cost recovery. Given the inherent uncertainty associated with the impact of climate change, these sensitivities represent a reasonably possible greater impact of climate change on the CGUs than that included in the impairment models. For the British Airways, Iberia, Vueling and Aer Lingus CGUs, while the recoverable amounts are estimated to exceed the carrying amounts by \u20ac15,432 million, \u20ac3,213 million, \u20ac1,606 million and \u20ac1,407 million, respectively, the recoverable amounts would be below the carrying amounts when applying reasonable possible changes, over the forecast period, in assumptions in each of the following scenarios: \u2022 British Airways: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 22 per cent; and (ii) if the fuel price had been 27 per cent higher without cost recovery; \u2022 Iberia: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 20 per cent; and (ii) if the fuel price had been 27 per cent higher without cost recovery; \u2022 Vueling: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 15 per cent; and (ii) if the fuel price had been 20 per cent higher without cost recovery; and \u2022 Aer Lingus: (i) if ASKs had been five per cent lower combined with a fuel price increase without cost recovery of 7 per cent; and (ii) if the fuel price had been 14 per cent higher without cost recovery. For the remainder of the reasonably possible changes in key assumptions applied to the British Airways, Iberia, Vueling and Aer Lingus CGUs and for all the reasonably possible changes in key assumptions applied to the IAG Loyalty CGU, no impairment arises. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-621": {
"value": "18 Investments a Investments in subsidiaries The Group\u2019s subsidiaries at December 31, 2022 are listed in the Group investments section. All subsidiary undertakings are included in the consolidation. The proportion of the voting rights in the subsidiary undertakings held directly do not differ from the proportion of ordinary shares held. There have been no significant changes in ownership interests of subsidiaries during the year. The total non-controlling interest at December 31, 2022 is \u20ac6 million (2021: \u20ac6 million). b Investments in associates and joint ventures The share of assets, liabilities, revenue and profit of the Group\u2019s associates and joint ventures, which are included in the Group\u2019s financial statements, are as follows: \u20ac million 2022 2021 Total assets 148 115 Total liabilities (104) (85) Revenue 89 64 Profit for the year 5 2 The detail of the movement in Investment in associates and joint ventures is shown as follows: \u20ac million 2022 2021 At beginning of year 40 29 Additions \u2013 9 Share of retained profits 5 2 Dividends received (2) (1) Exchange movements \u2013 1 43 40 At December 31, 2022 there are no restrictions on the ability of associates or joint ventures to transfer funds to the parent and there are no related contingent liabilities. At both December 31, 2022 and December 31, 2021 the investment in Sociedad Conjunta para la Emisi\u00f3n y Gesti\u00f3n de Medios de Pago EFC, S.A. exceeded 50 per cent ownership by the Group (50.5 per cent). The entity is treated as a joint venture as decisions regarding its strategy and operations require the unanimous consent of the parties who share control, including IAG. ",
"dimensions": {
"concept": "iag:DisclosureOfInvestments",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-685": {
"value": "a Investments in subsidiaries
The Group\u2019s subsidiaries at December 31, 2022 are listed in the Group investments section.
All subsidiary undertakings are included in the consolidation. The proportion of the voting rights in the subsidiary undertakings held directly
do not differ from the proportion of ordinary shares held. There have been no significant changes in ownership interests of subsidiaries
during the year.
The total non-controlling interest at December 31, 2022 is \u20ac6 million (2021: \u20ac6 million).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-684": {
"value": "b Investments in associates and joint ventures The share of assets, liabilities, revenue and profit of the Group\u2019s associates and joint ventures, which are included in the Group\u2019s financial statements, are as follows: \u20ac million 2022 2021 Total assets 148 115 Total liabilities (104) (85) Revenue 89 64 Profit for the year 5 2 The detail of the movement in Investment in associates and joint ventures is shown as follows: \u20ac million 2022 2021 At beginning of year 40 29 Additions \u2013 9 Share of retained profits 5 2 Dividends received (2) (1) Exchange movements \u2013 1 43 40 At December 31, 2022 there are no restrictions on the ability of associates or joint ventures to transfer funds to the parent and there are no related contingent liabilities. At both December 31, 2022 and December 31, 2021 the investment in Sociedad Conjunta para la Emisi\u00f3n y Gesti\u00f3n de Medios de Pago EFC, S.A. exceeded 50 per cent ownership by the Group (50.5 per cent). The entity is treated as a joint venture as decisions regarding its strategy and operations require the unanimous consent of the parties who share control, including IAG. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-674": {
"value": "b Investments in associates and joint ventures The share of assets, liabilities, revenue and profit of the Group\u2019s associates and joint ventures, which are included in the Group\u2019s financial statements, are as follows: \u20ac million 2022 2021 Total assets 148 115 Total liabilities (104) (85) Revenue 89 64 Profit for the year 5 2 The detail of the movement in Investment in associates and joint ventures is shown as follows: \u20ac million 2022 2021 At beginning of year 40 29 Additions \u2013 9 Share of retained profits 5 2 Dividends received (2) (1) Exchange movements \u2013 1 43 40 At December 31, 2022 there are no restrictions on the ability of associates or joint ventures to transfer funds to the parent and there are no related contingent liabilities. At both December 31, 2022 and December 31, 2021 the investment in Sociedad Conjunta para la Emisi\u00f3n y Gesti\u00f3n de Medios de Pago EFC, S.A. exceeded 50 per cent ownership by the Group (50.5 per cent). The entity is treated as a joint venture as decisions regarding its strategy and operations require the unanimous consent of the parties who share control, including IAG. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-649": {
"value": "b Investments in associates and joint ventures The share of assets, liabilities, revenue and profit of the Group\u2019s associates and joint ventures, which are included in the Group\u2019s financial statements, are as follows: \u20ac million 2022 2021 Total assets 148 115 Total liabilities (104) (85) Revenue 89 64 Profit for the year 5 2 The detail of the movement in Investment in associates and joint ventures is shown as follows: \u20ac million 2022 2021 At beginning of year 40 29 Additions \u2013 9 Share of retained profits 5 2 Dividends received (2) (1) Exchange movements \u2013 1 43 40 At December 31, 2022 there are no restrictions on the ability of associates or joint ventures to transfer funds to the parent and there are no related contingent liabilities. At both December 31, 2022 and December 31, 2021 the investment in Sociedad Conjunta para la Emisi\u00f3n y Gesti\u00f3n de Medios de Pago EFC, S.A. exceeded 50 per cent ownership by the Group (50.5 per cent). The entity is treated as a joint venture as decisions regarding its strategy and operations require the unanimous consent of the parties who share control, including IAG. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-622": {
"value": "19 Other equity investments Other equity investments include the following: \u20ac million 2022 2021 Unlisted securities 55 31 55 31 The charge relating to Other equity investments was \u20ac3 million (2021: \u20acnil). Investment in Air Europa Holdings On June 15, 2022, the Group entered into a financing arrangement with Globalia Corporaci\u00f3n Empresarial, S,A, (\u2018Globalia\u2019), whereby, the Group provided a \u20ac100 million seven-year unsecured loan, which was convertible for a period of two years from inception into a fixed number of the shares of Air Europa Holdings, S.L. (\u2018Air Europa Holdings\u2019). The loan was accounted for at fair value through the Income statement and recorded as an Other non-current financial asset. In determining the fair value of the financing arrangement, the Group utilised the income approach, whereby, the financing arrangement was valued using observable market data by which to determine an interest rate that a market participant would require to provide a loan with the same tenor and amount. This interest rate was then used to discount back the existing contractual cash flows to derive the fair value. On August 16, 2022, the Group exercised its exchange option with Globalia and converted the Other non-current financial asset into an Other equity investment. Immediately prior to exercising the exchange option, the fair value of the Other non-current financial asset was \u20ac65 million, representing a decrease from inception of \u20ac35 million, which has been recorded within Net change in fair value of financial instruments in the Income statement (see note 9c). The Group determined the fair value of the investment in Air Europa Holdings using both the market approach and the income approach, whereby the Group used both observable market data and unobservable inputs. The fair value was determined on the stand-alone basis of Air Europa Holdings without consideration of potential synergies that could be obtained if the Group were able to obtain control over the operations of Air Europa Holdings. The results of these valuation approaches resulted in a fair value of \u20ac22 million, representing a difference of \u20ac43 million from the fair value of the Other non-current financial asset prior to exercising the option. This loss, which derives from the de- recognition of the loan to Globalia prior to the recognition of the investment in Air Europa Holdings, was recorded within Net change in fair value of financial instruments in the Income statement (see note 9c). At December 31, 2022, the fair value of the investment in Air Europa Holdings was \u20ac24 million, representing an increase of \u20ac2 million since August 16, 2022, which has been recorded within Other comprehensive income. ",
"dimensions": {
"concept": "iag:DisclosureOfOtherEquityInvestments",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-686": {
"value": "20 Trade and other receivables \u20ac million 2022 2021 Amounts falling due within one year Trade receivables 1,444 850 Provision for expected credit loss (114) (115) Net trade receivables 1,330 735 Prepayments and accrued income 870 764 Other non-trade receivables 356 196 Other current receivables 1,226 960 Amounts falling due after one year Prepayments and accrued income 337 248 Other non-trade receivables 25 2 Other receivables due after one year 362 250 Movements in the provision for expected credit loss were as follows: \u20ac million 2022 2021 At beginning of year 115 125 Provided during the year 10 8 Released during the year (1) (11) Receivables written off during the year (9) (10) Exchange movements (1) 3 114 115 Trade receivables are generally non-interest-bearing and on 30 days terms (2021: 30 days). The credit risk exposure on the Group's trade receivables is set out below: December 31, 2022 \u20ac million Current <30 days 30-180 days 180-365 days > 365 days Trade receivables 719 509 91 25 100 Expected credit loss rate 0.3% 0.1% 1.1% 44.0% 100.0% Provision for expected credit loss 2 \u2013 1 11 100 December 31, 2021 \u20ac million Current <30 days 30-180 days 180-365 days > 365 days Trade receivables 498 132 94 10 116 Expected credit loss rate 0.2% 0.1% 1.1% 20.0% 95.7% Provision for expected credit loss 1 \u2013 1 2 111 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-675": {
"value": "20 Trade and other receivables \u20ac million 2022 2021 Amounts falling due within one year Trade receivables 1,444 850 Provision for expected credit loss (114) (115) Net trade receivables 1,330 735 Prepayments and accrued income 870 764 Other non-trade receivables 356 196 Other current receivables 1,226 960 Amounts falling due after one year Prepayments and accrued income 337 248 Other non-trade receivables 25 2 Other receivables due after one year 362 250 Movements in the provision for expected credit loss were as follows: \u20ac million 2022 2021 At beginning of year 115 125 Provided during the year 10 8 Released during the year (1) (11) Receivables written off during the year (9) (10) Exchange movements (1) 3 114 115 Trade receivables are generally non-interest-bearing and on 30 days terms (2021: 30 days). The credit risk exposure on the Group's trade receivables is set out below: December 31, 2022 \u20ac million Current <30 days 30-180 days 180-365 days > 365 days Trade receivables 719 509 91 25 100 Expected credit loss rate 0.3% 0.1% 1.1% 44.0% 100.0% Provision for expected credit loss 2 \u2013 1 11 100 December 31, 2021 \u20ac million Current <30 days 30-180 days 180-365 days > 365 days Trade receivables 498 132 94 10 116 Expected credit loss rate 0.2% 0.1% 1.1% 20.0% 95.7% Provision for expected credit loss 1 \u2013 1 2 111 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-623": {
"value": "20 Trade and other receivables \u20ac million 2022 2021 Amounts falling due within one year Trade receivables 1,444 850 Provision for expected credit loss (114) (115) Net trade receivables 1,330 735 Prepayments and accrued income 870 764 Other non-trade receivables 356 196 Other current receivables 1,226 960 Amounts falling due after one year Prepayments and accrued income 337 248 Other non-trade receivables 25 2 Other receivables due after one year 362 250 Movements in the provision for expected credit loss were as follows: \u20ac million 2022 2021 At beginning of year 115 125 Provided during the year 10 8 Released during the year (1) (11) Receivables written off during the year (9) (10) Exchange movements (1) 3 114 115 Trade receivables are generally non-interest-bearing and on 30 days terms (2021: 30 days). The credit risk exposure on the Group's trade receivables is set out below: December 31, 2022 \u20ac million Current <30 days 30-180 days 180-365 days > 365 days Trade receivables 719 509 91 25 100 Expected credit loss rate 0.3% 0.1% 1.1% 44.0% 100.0% Provision for expected credit loss 2 \u2013 1 11 100 December 31, 2021 \u20ac million Current <30 days 30-180 days 180-365 days > 365 days Trade receivables 498 132 94 10 116 Expected credit loss rate 0.2% 0.1% 1.1% 20.0% 95.7% Provision for expected credit loss 1 \u2013 1 2 111 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-650": {
"value": "Movements in the provision for expected credit loss were as follows: \u20ac million 2022 2021 At beginning of year 115 125 Provided during the year 10 8 Released during the year (1) (11) Receivables written off during the year (9) (10) Exchange movements (1) 3 114 115 Trade receivables are generally non-interest-bearing and on 30 days terms (2021: 30 days). Movements in the provision for expected credit loss were as follows: \u20ac million 2022 2021 At beginning of year 115 125 Provided during the year 10 8 Released during the year (1) (11) Receivables written off during the year (9) (10) Exchange movements (1) 3 114 115 Trade receivables are generally non-interest-bearing and on 30 days terms (2021: 30 days). The credit risk exposure on the Group's trade receivables is set out below: December 31, 2022 \u20ac million Current <30 days 30-180 days 180-365 days > 365 days Trade receivables 719 509 91 25 100 Expected credit loss rate 0.3% 0.1% 1.1% 44.0% 100.0% Provision for expected credit loss 2 \u2013 1 11 100 December 31, 2021 \u20ac million Current <30 days 30-180 days 180-365 days > 365 days Trade receivables 498 132 94 10 116 Expected credit loss rate 0.2% 0.1% 1.1% 20.0% 95.7% Provision for expected credit loss 1 \u2013 1 2 111 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-624": {
"value": "21 Cash, cash equivalents and other current interest-bearing deposits \u20ac million 2022 2021 Cash at bank and in hand 3,286 2,569 Short-term deposits maturing within three months 5,910 5,323 Cash and cash equivalents 9,196 7,892 Current interest-bearing deposits maturing after three months 403 51 Cash, cash equivalents and other interest-bearing deposits 9,599 7,943 Cash at bank is primarily held in AAA money market funds and bank deposits. Short-term deposits are for periods up to three months and earn interest based on the floating deposit rates. At December 31, 2022 the Group had no outstanding bank overdrafts (2021: \u20acnil). Current interest-bearing deposits have maturities in excess of three months and typically within 12 months of the reporting date and earn interest based on the market rates available at the time the deposit was made. At December 31, 2022 Aer Lingus held \u20ac33 million of restricted cash (2021: \u20ac35 million) within interest-bearing deposits maturing after more than three months to be used for employee-related obligations. a Net debt Movements in net debt were as follows: \u20ac million Balance at January 1, 2022 Cash flows Exchange movements New leases and modifications Other items Balance at December 31, 2022 Bank, other loans and asset financed liabilities 9,973 386 103 \u2013 (97) 10,365 Lease liabilities 9,637 (1,455) 415 1,017 5 9,619 Cash and cash equivalents (7,892) (1,316) 12 \u2013 \u2013 (9,196) Current interest-bearing deposits (51) (351) (1) \u2013 \u2013 (403) 11,667 (2,736) 529 1,017 (92) 10,385 \u20ac million Balance at January 1, 2021 Cash flows Exchange movements New leases and modifications Other items Balance at December 31, 2021 Bank, other loans and asset financed liabilities 5,655 4,033 261 \u2013 24 9,973 Lease liabilities 10,024 (1,481) 559 518 17 9,637 Cash and cash equivalents (5,774) (1,913) (205) \u2013 \u2013 (7,892) Current interest-bearing deposits (143) 91 1 \u2013 \u2013 (51) 9,762 730 616 518 41 11,667 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-651": {
"value": "At December 31, 2022 Aer Lingus held \u20ac33 million of restricted cash (2021: \u20ac35 million) within interest-bearing deposits maturing after
more than three months to be used for employee-related obligations.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-625": {
"value": "22 Trade and other payables \u20ac million 2022 2021 Trade creditors 1 2,969 2,068 Other creditors 1,244 898 Other taxation and social security 228 176 Accruals and deferred income 768 570 5,209 3,712 1 Trade creditors includes \u20ac48 million (2021: \u20ac89 million) due to suppliers that have signed up to supply chain financing programmes offered by a number of partner financial institutions. Under these programmes either or both: (i) the suppliers can elect on an invoice-by-invoice basis to receive a discounted early payment from the partner financial institutions rather than being paid in line with the agreed payment terms; and/or (ii) the Group elects on an invoice-by- invoice basis for the partner financial institution to pay the supplier in line with the agreed payment terms and the Group enters into payment terms with the partner financial institution of up to 150 days with interest incurred at 2.5 per cent. The Group assesses the arrangement against indicators to assess if liabilities which suppliers have transferred to the partner financial institutions under the supplier financing programmes continue to meet the definition of trade creditors or should be classified as borrowings. The cash flows arising from such arrangements are reported within cash flows from operating activities or within cash flows from financing activities, in the Consolidated cash flow statement, depending on whether the associated liabilities meet the definition of trade creditors or as borrowings. At December 31, 2022 these liabilities met the criteria of Trade creditors and are excluded from the Net debt table in note 21a. Average payment days to suppliers \u2013 Spanish Group companies Days 2022 2021 Average payment days for payment to suppliers 34 34 Ratio of transactions paid 33 32 Ratio of transactions outstanding for payment 53 78 \u20ac million 2022 2021 Total payments made 6,676 3,945 Total payments outstanding 264 147 Information on invoices paid in a period shorter than the maximum period established in the late payment regulations \u2013 Spanish Group companies 2022 2021 Total payments made (\u20ac million) 5,111 2,623 Percentage share of total payments to suppliers 77% 71% Number of invoices paid (thousand) 110 63 Percentage share of total number of invoices paid 48% 48% ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-626": {
"value": "23 Deferred revenue on ticket sales \u20ac million Customer loyalty programmes Sales in advance of carriage Total Balance at January 1, 2022 2,820 3,732 6,552 Cash received from customers 1 \u2013 21,000 21,000 Revenue recognised in the Income statement 2, 3 (780) (19,708) (20,488) Changes in estimates (21) \u2013 (21) Financing charge recognised in the Income statement 21 \u2013 21 Loyalty points issued to customers 4 662 82 744 Exchange movements (72) (92) (164) Balance at December 31, 2022 5, 6 2,630 5,014 7,644 Analysis: Current 2,304 5,014 7,318 Non-current 326 \u2013 326 2,630 5,014 7,644 \u20ac million Customer loyalty programmes Sales in advance of carriage Total Balance at January 1, 2021 2,725 2,405 5,130 Cash received from customers 1 \u2013 7,689 7,689 Revenue recognised in the Income statement 2, 3 (524) (6,518) (7,042) Financing charge recognised in the Income statement 37 \u2013 37 Loyalty points issued to customers 4 407 40 447 Exchange movements 175 116 291 Balance at December 31, 2021 5, 6 2,820 3,732 6,552 Analysis: Current 2,429 3,732 6,161 Non-current 391 \u2013 391 2,820 3,732 6,552 1 Cash received from customers is net of refunds. 2 Where the Group acts as an agent in the provision of redemption products and services to customers through loyalty programmes, or in the provision of interline flights to passengers, revenue is recognised in the Income statement net of the related costs. 3 Included within revenue recognised in the Income statement during 2022 is an amount of \u20ac2,183 million previously held as deferred revenue at January 1, 2022 (recognised during 2021 and previously held as deferred revenue at January 1, 2021: \u20ac780 million). 4 Included within loyalty points issued to customers at December 31, 2022 is an amount of \u20ac82 million (December 31, 2021: \u20ac40 million) classified within Sales in advance of carriage representing the cash component of the consideration paid by customers, where such consideration comprises both cash and the redemption of Avios. 5 Included within Deferred revenue on ticket sales at December 31, 2022 is an amount of \u20ac911 million (December 31, 2021: \u20ac1,400 million) relating to unredeemed vouchers (including associated taxes). 6 In the year to December 31, 2022, the Group recognised \u20ac266 million (2021: \u20ac154 million) within Other revenue related to performance obligations associated with brand and marketing services recognised on the issuance of Avios for both air and non-air partners. The unsatisfied performance obligation under the Group\u2019s customer loyalty programmes that is classified as non-current was \u20ac326 million at December 31, 2022. Of this amount, \u20ac317 million is expected to be recognised as revenue in 1 to 5 years from the reporting date and \u20ac9 million thereafter. Deferred revenue relating to customer loyalty programmes consists primarily of revenue allocated to performance obligations associated with Avios. Avios are issued by the Group's airlines through their loyalty programmes, or are sold to third parties such as credit card providers, who issue them as part of their loyalty programme. While Avios do not have an expiry date and can be redeemed at any time in the future, a customer\u2019s membership account is closed if there is a period of 36 months of inactivity in terms of both issuances and redemptions. Revenue may therefore be recognised at any time in the future. Deferred revenue in respect of sales in advance of carriage consists of revenue allocated to airline tickets to be used for future travel. Typically these tickets expire within 12 months after the planned travel date, if they are not used within that time period, however, with the significant disruption caused by the COVID-19 pandemic during 2020 and 2021, the Group extended the expiry period up to 24 months after the planned travel date, depending on the operating company. During the course of 2022 with the disruption caused by the COVID-19 pandemic significantly reduced, flexible fare tickets now typically expire within 12 months after the planned travel date. In addition, the significant disruption caused by the COVID-19 pandemic led to a number of flight cancellations during both 2020 and 2021, which entitled the customer to either a refund or the issuance of a voucher for future redemption. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-627": {
"value": "24 Other long-term liabilities
\u20ac million 2022 2021
Non-current trade creditors 147 121
Accruals and deferred income 53 87
200 208
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-628": {
"value": "25 Long-term borrowings a Total borrowings 2022 2021 \u20ac million Current Non-current Total Current Non-current Total Bank and other loans 822 5,724 6,546 761 6,724 7,485 Asset financed liabilities 255 3,564 3,819 171 2,244 2,415 Lease liabilities 1,766 7,853 9,619 1,521 8,116 9,637 Other financing liabilities 1 \u2013 \u2013 \u2013 73 \u2013 73 Interest-bearing long-term borrowings 2,843 17,141 19,984 2,526 17,084 19,610 1 Other financing liabilities recognised in 2021 included sale and repurchase agreements with regard to emission allowances and represent the amount the Group repurchased during 2022. Long-term borrowings of the Group amounting to \u20ac3,962 million (December 31, 2021: \u20ac2,434 million) are secured on owned fleet assets with a net book value of \u20ac3,931 million (December 31, 2021: \u20ac2,938 million). Asset financed liabilities are all secured on the associated aircraft or other property, plant and equipment. b Bank and other loans \u20ac million 2022 2021 Floating rate pound sterling term loan guaranteed by UK Export Finance (UKEF) 1 2,315 2,358 Floating rate Instituto de Cr\u00e9dito Oficial (ICO) guaranteed loans 2 1,070 1,095 \u20ac700 million fixed rate 3.75 per cent unsecured bond 2029 3 717 710 \u20ac825 million fixed rate 1.125 per cent convertible bond 2028 4 605 757 \u20ac500 million fixed rate 2.75 per cent unsecured bond 2025 3 509 508 \u20ac500 million fixed rate 0.50 per cent bond 2023 5 501 499 \u20ac500 million fixed rate 1.50 per cent bond 2027 5 499 498 Floating rate euro mortgage loans secured on aircraft 6 143 171 Fixed rate unsecured US dollar mortgage loan 7 71 85 Fixed rate unsecured bonds 8 56 138 Ireland Strategic Investment Fund (ISIF) facility 9 50 149 Fixed rate unsecured euro loans with the Spanish State (Department of Industry) 10 10 15 \u20ac500 million fixed rate 0.625 per cent convertible bond 2022 11 \u2013 491 Fixed rate Chinese yuan mortgage loans secured on aircraft 12 \u2013 11 6,546 7,485 Less: current instalments due on bank and other loans (822) (761) 5,724 6,724 1 On February 22, 2021, British Airways entered into a floating rate five-year term loan Export Development Guarantee Facility of \u20ac2.3 billion (\u00a32.0 billion) underwritten by a syndicate of banks, with 80 per cent of the principal guaranteed by UKEF. On November 1, 2021, British Airways entered into a further 5 year term loan Export Development Guarantee Facility of \u20ac1.1 billion (\u00a31.0 billion) underwritten by a syndicate of banks, with 80 per cent of the principal guaranteed by UKEF. The further facility had not been drawn as at December 31, 2022. The loan contains a number of non-financial covenants to protect the position of the banks involved, including restrictions on the upstreaming of cash to the rest of the IAG companies. 2 On April 30, 2020, Iberia and Vueling entered into floating rate syndicated financing agreements of \u20ac750 million and \u20ac260 million respectively. The loans are repayable from 2023 to 2026. The ICO in Spain guarantees 70 per cent of the value of loans. The loans contain a number of non-financial covenants to protect the position of the banks involved, including restrictions on the upstreaming of cash to the rest of the IAG companies. 3 On March 25, 2021, the Group issued two tranches of senior unsecured bonds for an aggregate principal amount of \u20ac1.2 billion, \u20ac500 million due March 25, 2025 and \u20ac700 million due March 25, 2029. The bonds bear a fixed rate of interest of 2.75 per cent and 3.75 per cent per annum, payable in arrears, respectively. The bonds were issued at 100 per cent of their principal amount, respectively, and, unless previously redeemed or purchased and cancelled, will be redeemed at 100 per cent of their principal amount on their respective maturity dates. 4 A senior unsecured bond convertible into ordinary shares of IAG was issued by the Group on May 11, 2021; \u20ac825 million fixed rate 1.125 per cent raising net proceeds of \u20ac818 million and due in 2028. The Group holds an option to redeem the convertible bond at its principal amount, together with accrued interest, no earlier than two years prior to the final maturity date. The bond contains dividend protection and a total of 244,850,715 options at inception and at December 31, 2022 and 2021 to convert into ordinary shares of IAG. The Group also holds an option to redeem the convertible bond, in full or in part, in cash in the event that bondholders exercise their right to convert the bond into ordinary shares of IAG. See further details below. 5 In July 2019, the Group issued two tranches of senior unsecured bonds for an aggregate principal amount of \u20ac1 billion, \u20ac500 million due July 4, 2023 and \u20ac500 million due July 4, 2027. The bonds bear a fixed rate of interest of 0.5 per cent and 1.5 per cent per annum annually payable in arrears, respectively. The bonds were issued at 99.417 per cent and 98.803 per cent of their principal amount, respectively, and, unless previously redeemed or purchased and cancelled, will be redeemed at 100 per cent of their principal amount on their respective maturity dates. 6 Floating rate euro mortgage loans are secured on specific aircraft assets of the Group and bear interest of between 2.1 and 3.6 per cent. The loans are repayable between 2024 and 2027. 7 Fixed rate unsecured US dollar mortgage loan bearing interest between 1.38 to 2.86 per cent. The loan is repayable between 2023 and 2026. 8 Total of \u20ac200 million fixed rate unsecured bonds between 3.75 to 4.93 per cent coupon repayable between 2023 and 2027. 9 On December 23, 2020, Aer Lingus entered into a floating rate financing agreement with the Ireland Strategic Investment Fund (ISIF) for \u20ac75 million. On March 27, 2021, Aer Lingus entered into a further floating rate financing agreement with the ISIF for an additional \u20ac75 million. On March 4, 2022, Aer Lingus entered into a financing arrangement with ISIF, which subsequently extinguished the existing \u20ac150 million of facilities and replaced them with a \u20ac350 million facility that matures in March 2025. On December 13, 2022, Aer Lingus early repaid \u20ac100 million of the ISIF facility, with the \u20ac100 million being available to draw again over the tenor of the facility. The facility is secured on specific landing rights. At December 31, 2022, \u20ac300 million of this facility remained undrawn. 10 Fixed rate unsecured euro loans with the Spanish State (Department of Industry) bear nil interest and are repayable between 2023 and 2028. 11 Senior unsecured bond convertible into ordinary shares of IAG was issued by the Group in November 2015; \u20ac500 million fixed rate 0.625 per cent raising net proceeds of \u20ac494 million and due in 2022. The Group held an option to redeem the convertible bond at its principal amount, together with accrued interest, no earlier than two years prior to the final maturity date. The Group redeemed the bond at maturity in November 2022 with no conversion into ordinary shares. 12 Fixed rate Chinese yuan mortgage loans, secured on specific aircraft assets of the Group were repaid in the fourth quarter of 2022. In addition, on March 23, 2021, the Group entered into a three-year US dollar secured Revolving Credit Facility accessible by British Airways, Iberia and Aer Lingus. On August 23, 2022, the Group extended the term of the Revolving Credit Facility by an additional 12 months through to March 2025. The amount available under the facility is $1.755 billion. As at December 31, 2022 no amounts had been drawn under the facility (2021: nil). While the Group does not forecast drawing down on the Revolving Credit Facility, should it do so, the resultant debt would be secured against specific landing rights and aircraft in the respective operating companies. Details of the 2028 convertible bond The \u20ac825 million convertible bond issued in 2021 provides bondholders with dividend protection and includes a total of 244,850,715 options at inception and at December 31, 2022 to convert into ordinary shares of IAG. The Group holds an option to redeem the convertible bond at its principal amount, together with accrued interest, no earlier than two years prior to the final maturity date. The Group also holds an option to redeem the convertible bond, in full or in part, in cash in the event that bondholders exercise their right to convert the bond into ordinary shares of IAG. The convertible bond is recorded at its fair value, which at December 31, 2022 was \u20ac605 million (2021: \u20ac756 million), representing a decrease of \u20ac151 million since January 1, 2022. Of this decrease, the charge recorded in Other comprehensive income arising from credit risk of the convertible bonds was \u20ac8 million and a credit recorded within Finance costs in the Income statement attributable to changes in market conditions of \u20ac159 million. Transactions with unconsolidated entities On April 12, 2022, the Group entered into an asset-financing structure, under which five aircraft were financed. These transactions mature between 2032 and 2036. This arrangement was transacted through an unconsolidated structured entity, which in turn issued the Iberia Pass Through Certificates, Series 2022-1, commonly referred to as Enhanced Equipment Trust Certificates (EETCs). In doing so the Group recognised \u20ac680 million of Asset financed liabilities. On October 21, 2022, the Group entered into an asset-financing structure, under which four aircraft were financed. These transactions mature between 2032 and 2036. This arrangement was transacted through an unconsolidated structured entity, which in turn issued the British Airways Pass Through Certificates, Series 2022-1. In doing so the Group recognised \u20ac159 million of Asset financed liabilities. In July 2021, the Group entered into an asset-financing structure, under which seven aircraft were financed. These transactions mature between 2031 and 2035. This arrangement was transacted through an unconsolidated structured entity, which in turn issued the British Airways Pass Through Certificates, Series 2021-1. In doing so the Group recognised \u20ac204 million of Asset financed liabilities. In the fourth quarter of 2020, the Group entered into an asset-financing structure, under which nine aircraft were financed. These transactions mature between 2028 and 2032. This arrangement was transacted through an unconsolidated structured entity, which in turn issued the British Airways Pass Through Certificates, Series 2020-1. In doing so the Group recognised \u20ac472 million of Asset financed liabilities. In the third quarter of 2019, the Group entered into an asset-financing structure, under which eight aircraft were financed, with the transactions maturing between 2029 and 2034. This arrangement was transacted through an unconsolidated structured entity, which in turn issued the British Airways Pass Through Certificates, Series 2019-1. In doing so the Group recognised \u20ac725 million of Asset financed liabilities. As at December 31, 2022, Asset financed liabilities include cumulative amounts of \u20ac2,983 million (2021: \u20ac1,489 million) and the associated assets recorded within Property, plant and equipment include cumulative amounts of \u20ac3,400 million (2021: \u20ac3,029 million) associ ated with transactions with unconsolidated structured entities having issued EETCs. c Reconciliation of movements of liabilities to cash flows arising from financing activities \u20ac million Bank, other loans and asset financed liabilities Lease liabilities Derivatives to mitigate volatility in financial liabilities Total Balance at January 1, 2022 9,973 9,637 (136) 19,474 Proceeds from borrowings 1,436 \u2013 \u2013 1,436 Repayment of borrowings (1,050) \u2013 \u2013 (1,050) Repayment of lease liabilities \u2013 (1,455) \u2013 (1,455) Settlement of derivative financial instruments 1 \u2013 \u2013 1,029 1,029 Total changes from financing cash flows 386 (1,455) 1,029 (40) Interest paid (334) (422) \u2013 (756) Interest expense 377 464 \u2013 841 New leases and lease modifications \u2013 1,017 \u2013 1,017 Fair value movements (151) \u2013 (990) (1,141) Other non-cash movements 11 (37) \u2013 (26) Exchange movements 103 415 26 544 Balance at December 31, 2022 10,365 9,619 (71) 19,913 \u20ac million Bank, other loans and asset financed liabilities Lease liabilities Derivatives to mitigate volatility in financial liabilities Total Balance at January 1, 2021 5,655 10,024 429 16,108 Proceeds from borrowings 4,817 \u2013 \u2013 4,817 Repayment of borrowings (784) \u2013 \u2013 (784) Repayment of lease liabilities \u2013 (1,481) \u2013 (1,481) Settlement of derivative financial instruments 1 \u2013 \u2013 (268) (268) Total changes from financing cash flows 4,033 (1,481) (268) 2,284 Interest paid (212) (367) (26) (605) Interest expense 307 393 \u2013 700 New leases and lease modifications \u2013 518 \u2013 518 Fair value movements (69) \u2013 (286) (355) Other non-cash movements (2) (9) 15 4 Exchange movements 261 559 \u2013 820 Balance at December 31, 2021 9,973 9,637 (136) 19,474 1 Gain of \u20ac1,036 million (2021: loss of \u20ac268 million) relating to derivatives not designated in hedge relationships and reported within Net cash flows from financing activities in the Cash flow statement, and a loss of \u20ac7 million (2021: \u20acnil) relating to interest rate derivatives designated in hedge relationships and reported within Net cash flows from operating activities. d Total loans, asset financed liabilities, other financing liabilities and lease liabilities Million 2022 2021 Loans Bank: US dollar $75 $98 Euro \u20ac1,273 \u20ac1,430 Pound sterling \u00a32,026 \u00a32,003 Chinese yuan - CNY 78 \u20ac3,659 \u20ac3,883 Fixed rate bonds: Euro \u20ac2,887 \u20ac3,602 \u20ac2,887 \u20ac3,602 Asset financed liabilities US dollar $3,285 $2,192 Euro \u20ac542 \u20ac408 Japanese yen \u00a525,748 \u00a58,226 \u20ac3,819 \u20ac2,415 Other financing liabilities Euro - \u20ac73 - \u20ac73 Lease liabilities US dollar $7,621 $7,709 Euro \u20ac1,239 \u20ac1,547 Japanese yen \u00a571,994 \u00a575,450 Pound sterling \u00a3620 \u00a3569 \u20ac9,619 \u20ac9,637 Total interest-bearing borrowings \u20ac19,984 \u20ac19,610 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-652": {
"value": "a Total borrowings 2022 2021 \u20ac million Current Non-current Total Current Non-current Total Bank and other loans 822 5,724 6,546 761 6,724 7,485 Asset financed liabilities 255 3,564 3,819 171 2,244 2,415 Lease liabilities 1,766 7,853 9,619 1,521 8,116 9,637 Other financing liabilities 1 \u2013 \u2013 \u2013 73 \u2013 73 Interest-bearing long-term borrowings 2,843 17,141 19,984 2,526 17,084 19,610 1 Other financing liabilities recognised in 2021 included sale and repurchase agreements with regard to emission allowances and represent the amount the Group repurchased during 2022. Long-term borrowings of the Group amounting to \u20ac3,962 million (December 31, 2021: \u20ac2,434 million) are secured on owned fleet assets with a net book value of \u20ac3,931 million (December 31, 2021: \u20ac2,938 million). Asset financed liabilities are all secured on the associated aircraft or other property, plant and equipment. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRepurchaseAndReverseRepurchaseAgreementsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-629": {
"value": "26 Provisions \u20ac million Restoration and handback provisions Restructuring provisions Employee leaving indemnities and other employee related provisions Legal claims and contractual disputes provisions ETS provisions 1 Other provisions 1 Total Net book value January 1, 2022 1 1,832 274 720 90 9 74 2,999 Provisions recorded during the year 596 14 74 47 134 31 896 Reclassifications (15) \u2013 \u2013 \u2013 \u2013 \u2013 (15) Utilised during the year (167) (81) (32) (2) (10) (31) (323) Release of unused amounts (42) (12) (24) (45) \u2013 (14) (137) Unwinding of discount 38 \u2013 5 \u2013 \u2013 \u2013 43 Remeasurements 27 \u2013 (69) \u2013 \u2013 \u2013 (42) Exchange differences 131 (1) (1) (1) (1) \u2013 127 Net book value December 31, 2022 2,400 194 673 89 132 60 3,548 Analysis: Current 508 112 70 66 132 8 896 Non-current 1,892 82 603 23 \u2013 52 2,652 2,400 194 673 89 132 60 3,548 1 During 2022 the Group has separated the ETS provision from Other provisions. This change resulted in an amount of \u20ac9 million recorded within ETS provisions at January 1, 2022. There was no net change in total provisions. Restoration and handback provisions The provision for restoration and handback costs is maintained to meet the contractual maintenance and return conditions on aircraft held under lease. The provision also includes an amount relating to leased land and buildings where restoration costs are contractually required at the end of the lease. Such costs are capitalised within ROU assets. The provision is long-term in nature, typically covering the leased asset term, which for aircraft is up to 12 years. Included within the release of unused restoration and handback provisions is an amount of \u20ac7 million relating to the reversal of contractual lease provisions, which represent the estimation of the cost to fulfil the handback conditions associated with the leased aircraft that had been permanently stood down and impaired during the year to December 31, 2020, which have subsequently been stood back up with a resultant impairment reversal during the year to December 31, 2022. The provisions are determined by discounting the future cash flows using pre-tax risk free rates specific to the tenor of the provision and the currency in which it arises. The unwinding of the discounting of the provisions is recorded as a finance cost in the Income statement (refer to note 9a). Remeasurements arising from changes in estimates relating to the effects of both discounting and inflation are recorded in the Income statement to the extent they relate to avoidable provisions or recorded as an adjustment to the right of use asset (see note 14) for those unavoidable provisions. Where amounts are finalised and the uncertainty relating to these provisions removed, the associated liability is reclassified to either current or non-current Other creditors, dependent on the expecting timing of settlement. Restructuring provisions The restructuring provision includes provisions for voluntary redundancies including the collective redundancy programme for Iberia's Transformation Plan implemented prior to 2022, which provides for payments to affected employees until they reach the statutory retirement age. The amount provided for has been determined by an actuarial valuation made by independent actuaries, and was based on the same assumptions as those made to determine the provisions for obligations to flight crew below, with the exception of the discount rate, which in this case was 3.2 per cent. The payments related to this provision will continue over the next 7 years. At December 31, 2022, \u20ac185 million of this provision related to collective redundancy programmes (2021: \u20ac270 million). Employee leaving indemnities and other employee related provisions This provision includes employees leaving indemnities relating to staff under various contractual arrangements. The Group recognises a provision relating to flight crew (both pilots and cabin crew) who the Group expects to still be in employment by the age of 60, at which point the individuals will have the option of continuing full time employment, being placed on reserve and retaining their employment relationship until reaching the statutory retirement age (referred to as \u2018active\u2019), or alternatively taking early retirement (referred to as \u2018inactive\u2019). The Group is required to remunerate these employees until they reach the statutory retirement age. In determining the provision to be recognised for the proportion of employees that will elect to be inactive, the Group estimates a number of financial assumptions, including, but not limited to: (i) medium to long-term salary growth and inflation; (ii) the discount rate to apply; (iii) the rate of public social security growth; (iv) mortality rates; and (vi) staff turnover. The provision was re-assessed at December 31, 2022 with the use of independent actuaries using the projected unit credit method, based on a discount rate consistent with the iBoxx index of 3.72 per cent for active employees and 3.50 per cent for inactive employees (2021: iBoxx index of 0.91 per cent and 0.00 per cent, respectively), the PERM/F-2000P mortality tables, and assuming contractual salary increases of up to 6.1 per cent in 2023 and 2.0 per cent in 2024 and then 2.0 per cent per annum thereafter derived from increases in the Consumer Price Index (CPI). At December 31, 2022, there were a total of 4,827 flight crew (December 31, 2021: 4,533) eligible for making such elections when they reach the age of 60. At December 31, 2022, there were 426 employees having reached the age of 60 who had elected to become inactive (December 31, 2021: 333). In addition, at December 31, 2022 the average length of employment of the eligible flight crew was 18 years (December 31, 2021: 20 years). This is mainly a long-term provision. Remeasurements in the valuation of this provision are recorded in Other comprehensive income. The amount relating to this provision was \u20ac611 million at December 31, 2022 (2021: \u20ac644 million). Legal claims and contractual disputes provisions Legal claims and contractual disputes provisions include: \u2022 amounts for multi-party claims from groups of employees on a number of matters related to their employment, including claims for additional holiday pay and for age discrimination; \u2022 amounts related to ongoing contractual disputes arising from the Group\u2019s operations; and \u2022 amounts related to investigations by a number of competition authorities in connection with alleged anti-competitive activity concerning the Group\u2019s passenger and cargo businesses. The final amount required to settle the remaining claims and fines is subject to uncertainty. ETS provisions ETS provisions relate to the Emissions Trading Scheme for CO 2 equivalent emitted on flights within the EU, Switzerland and the United Kingdom and due to be settled in the year subsequent to the reporting date. See note 4 for further information. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-653": {
"value": "Restoration and handback provisions The provision for restoration and handback costs is maintained to meet the contractual maintenance and return conditions on aircraft held under lease. The provision also includes an amount relating to leased land and buildings where restoration costs are contractually required at the end of the lease. Such costs are capitalised within ROU assets. The provision is long-term in nature, typically covering the leased asset term, which for aircraft is up to 12 years. Included within the release of unused restoration and handback provisions is an amount of \u20ac7 million relating to the reversal of contractual lease provisions, which represent the estimation of the cost to fulfil the handback conditions associated with the leased aircraft that had been permanently stood down and impaired during the year to December 31, 2020, which have subsequently been stood back up with a resultant impairment reversal during the year to December 31, 2022. The provisions are determined by discounting the future cash flows using pre-tax risk free rates specific to the tenor of the provision and the currency in which it arises. The unwinding of the discounting of the provisions is recorded as a finance cost in the Income statement (refer to note 9a). Remeasurements arising from changes in estimates relating to the effects of both discounting and inflation are recorded in the Income statement to the extent they relate to avoidable provisions or recorded as an adjustment to the right of use asset (see note 14) for those unavoidable provisions. Where amounts are finalised and the uncertainty relating to these provisions removed, the associated liability is reclassified to either current or non-current Other creditors, dependent on the expecting timing of settlement. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDecommissioningRestorationAndRehabilitationProvisionsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-630": {
"value": "27 Financial risk management objectives and policies The Group is exposed to a variety of financial risks: market risk (including fuel price risk, foreign currency risk and interest rate risk), credit risk and liquidity risk. The principal impacts of these on the financial statements are discussed below: a Fuel price risk The Group is exposed to fuel price risk. In order to mitigate such risk, under the Group\u2019s fuel price risk management strategy a variety of over the counter derivative instruments are entered into. The Group strategy is to hedge a proportion of fuel consumption up to two years within the approved hedging profile. The following table demonstrates the sensitivity of the Group\u2019s principal foreign exchange exposure to a reasonable possible change in the fuel price, based on current market volatility, with all other variables held constant on the result before tax and equity 1 . The sensitivity analysis has been performed on fuel derivatives (both those designated in hedge relationships and those not designated in hedge relationships) at the reporting date only and is not reflective of the impact had the sensitised rates been applied through the duration of th years to December 31, 2022 and 2021. 2022 2021 Increase/(decrease) in fuel price per cent Effect on result before tax \u20ac million Effect on equity \u20ac million Increase/(decrease) in fuel price per cent Effect on result before tax \u20ac million Effect on equity \u20ac million 45 \u2013 1,402 30 \u2013 834 (45) \u2013 (1,200) (30) \u2013 (520) 1 The sensitivity analysis on equity excludes the sensitivity amounts recognised in the result before tax. During 2022, following a substantial recovery in the global price of crude oil and jet fuel, which continues to be impacted by geopolitical events in Ukraine, the fair value of such net asset derivative instruments was \u20ac87 million at December 31, 2022, representing a decrease of \u20ac201 million since January 1, 2022. b Foreign currency risk The Group is exposed to foreign currency risk on revenue, purchases and borrowings that are denominated in a currency other than the functional currency of the Group (the euro). The currencies in which these transactions are denominated are primarily US dollar and pound sterling. The Group has a number of strategies to hedge foreign currency risk including hedging a proportion of its foreign currency sales and purchases for up to three years. The following table demonstrates the sensitivity of the Group\u2019s principal foreign exchange exposure to a reasonable possible change in the US dollar, pound sterling and Japanese yen exchange rates, based on current market volatility, with all other variables held constant on the result before tax and equity 1 . The sensitivity analysis has been performed on interest-bearing liabilities, lease liabilities and derivatives (both those designated in hedge relationships and those not designated in hedge relationships) denominated in foreign currencies at the reporting date only and is not reflective of the impact had the sensitised rates been applied through the duration of the years to December 31, 2022 and 2021. Strengthening/ (weakening) in US dollar rate per cent Effect on result before tax \u20ac million Effect on equity \u20ac million Strengthening/ (weakening) in pound sterling rate per cent Effect on result before tax \u20ac million Effect on equity \u20ac million Strengthening/ (weakening) in Japanese yen rate per cent Effect on result before tax \u20ac million Effect on equity \u20ac million 2022 20 904 1,299 20 (20) 241 20 (58) (70) (20) (922) (1,161) (20) 18 (241) (20) 58 70 2021 10 255 523 10 (10) 134 10 (17) (41) (10) (260) (481) (10) 10 (134) (10) 17 41 1 The sensitivity analysis on equity, excludes the sensitivity amounts recognised in the result before tax. At December 31, 2022, the fair value of foreign currency net asset derivative instruments was \u20ac108 million, representing a decrease of \u20ac77 million since January 1, 2022. These comprise both derivatives designated in hedge relationships and those derivatives that are not designated into a hedge relationship at inception. Those derivatives not designated in a hedge relationship on inception have their mark-to- market movements recorded directly in the Income statement and recognised within Net currency retranslation (charges)/credits. c Interest rate risk The Group is exposed to changes in interest rates on debt and on cash deposits. In order to mitigate the interest rate risk, the Group\u2019s policies allow a variety of over the counter derivative instruments to be entered into. The following table demonstrates the sensitivity of the Group\u2019s interest rate exposure to a reasonable possible change in the US dollar, euro and sterling interest rates, based on expectations regarding forward rate movements, on the result before tax and equity 1 . The sensitivity analysis has been performed on interest rate derivatives (both those designated in hedge relationships and those not designated in hedge relationships) at the reporting date only and is not reflective of the impact had the sensitised rates been applied through the duration of the years to December 31, 2022 and 2021. Strengthening/ (weakening) in US interest rate Basis points Effect on result before tax \u20ac million Effect on equity \u20ac million Strengthening/ (weakening) in euro interest rate Basis points Effect on result before tax \u20ac million Effect on equity \u20ac million Strengthening/ (weakening) in sterling interest rate Basis points Effect on result before tax \u20ac million Effect on equity \u20ac million 2022 150 \u2013 6 150 5 17 150 (35) \u2013 (150) \u2013 (7) (150) (4) (17) (150) 35 \u2013 2021 50 \u2013 \u2013 50 3 10 50 (2) \u2013 (50) \u2013 \u2013 (50) (3) (9) (50) 2 \u2013 1 The sensitivity analysis on equity excludes the sensitivity amounts recognised in the result before tax. For details regarding the Group\u2019s management of interest rate benchmark reform, refer to note 27i. d Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The Group has policies and procedures to monitor the risk by assigning limits to each counterparty by underlying exposure and by operating company and by only entering into transactions with counterparties with a very low credit risk. At each period end, the Group assesses the effect of counterparties\u2019 and the Group\u2019s own credit risk on the fair value of derivatives and any ineffectiveness arising is immediately recognised in the Income statement within Other non-operating expenses. e Counterparty risk The Group is exposed to the non-performance by its counterparties in respect of financial assets receivable. The Group has policies and procedures to monitor the risk by assigning limits to each counterparty by underlying exposure and by operating company. The underlying exposures are monitored on a daily basis and the overall exposure limit by counterparty is periodically reviewed by using available market information. The financial assets recognised in the financial statements, net of impairment losses (if any), represent the Group's maximum exposure to credit risk, without taking into account any guarantees in place or other credit enhancements. At December 31, 2022 the Group\u2019s credit risk position, allocated by region, in respect of treasury managed cash and derivatives was as follows: Mark-to-market of treasury controlled financial instruments allocated by geography Region 2022 2021 United Kingdom 51% 44% Spain 1% \u2013 Ireland 20% 18% Rest of eurozone 27% 34% Rest of world 1% 4% f Liquidity risk The Group invests cash in interest-bearing accounts, time deposits and money market funds, choosing instruments with appropriate maturities or liquidity to retain sufficient headroom to readily generate cash inflows required to manage liquidity risk. The Group has also committed revolving credit facilities. At December 31, 2022 the Group had undrawn overdraft facilities of \u20ac53 million (2021: \u20ac53 million). The Group held the following undrawn general and committed aircraft financing facilities: 2022 Million Currency \u20ac equivalent General facilities 1 Euro facilities expiring between January and March 2023 \u20ac87 87 US dollar facility expiring November 2023 $50 47 Euro facility expiring March 2025 \u20ac300 300 US dollar facility expiring March 2025 $1,755 1,654 Pound sterling facility expiring November 2025 \u00a31,000 1,143 3,231 Committed aircraft facilities US dollar facilities expiring between February and September 2023 2 $386 364 US dollar facility expiring April 2023 2 $273 257 US dollar facilities expiring between October 2023 and March 2024 3 $525 495 1,116 2021 Million Currency \u20ac equivalent General facilities 1 Euro facilities expiring between January and July 2022 \u20ac27 27 Euro facilities expiring March 2023 \u20ac60 60 US dollar facility expiring May 2022 $50 44 US dollar facility expiring March 2024 $1,755 1,556 Pound sterling facility expiring November 2025 \u00a31,000 1,177 2,864 Committed aircraft facilities US dollar facility expiring September 2022 2 $635 563 US dollar facilities expiring March 2024 3 $635 563 1,126 1 The general facilities can be drawn at any time at the discretion of the Group subject to the provision of up to three days\u2019 notice of the intended utilisation, depending on the facility. 2 The aircraft facilities maturing in 2023 are available for specific committed aircraft deliveries. 3 The aircraft facilities maturing between October 2023 and March 2024 (2021: maturing in March 2024) are available for specific committed aircraft deliveries and require the Group to give three months\u2019 notice to the counterparty of its intention to utilise the facilities. The following table analyses the Group\u2019s (outflows) and inflows in respect of financial liabilities and derivative financial instruments into
relevant maturity groupings based on the remaining period at December 31 to the contractual maturity date. The amounts disclosed in the
table are the contractual undiscounted cash flows and include interest.
\u20ac million
Within 6
months
6-12
months
1-2
years
2-5
years
More than 5
years
Total
2022
Interest-bearing loans and borrowings:
Asset financing liabilities (196) (190) (374) (1,081) (2,823) (4,664)
Lease liabilities (955) (1,050) (2,120) (3,374) (5,295)
(12,794)
Fixed rate borrowings (64) (523) (78) (1,242) (757)
(2,664)
Floating rate borrowings (227) (146) (455) (3,191) \u2013
(4,019)
Trade and other payables (5,209) \u2013 (200) \u2013 \u2013
(5,409)
Derivative financial instruments (assets):
Interest rate derivatives 42 9 12 9 \u2013 72
Foreign exchange contracts 245 195 46 \u2013 \u2013
486
Fuel derivatives 122 62 13 \u2013 \u2013
197
Derivative financial instruments (liabilities):
Interest rate derivatives (4) (1) (1) (3) \u2013 (9)
Foreign exchange contracts (185) (121) (68) \u2013 \u2013
(374)
Fuel derivatives (42) (59) (10) \u2013 \u2013
(111)
December 31, 2022
(6,473) (1,824) (3,235) (8,882) (8,875) (29,289)
\u20ac million
Within 6
months
6-12
months
1-2
years
2-5
years
More than 5
years
Total
2021
Interest-bearing loans and borrowings:
Asset financing liabilities (122) (116) (230) (678) (1,714) (2,860)
Lease liabilities (920) (854) (1,814) (3,839) (5,524) (12,951)
Fixed rate borrowings (151) (529) (578) (690) (2,094) (4,042)
Floating rate borrowings (129) (285) (428) (3,368) (16) (4,226)
Other financing liabilities (73) \u2013 \u2013 \u2013 \u2013 (73)
Trade and other payables (3,712) \u2013 (208) \u2013 \u2013 (3,920)
Derivative financial instruments (assets):
Interest rate derivatives \u2013 1 2 3 \u2013 6
Foreign exchange contracts 227 52 46 1 \u2013 326
Fuel derivatives 157 129 48 \u2013 \u2013 334
Derivative financial instruments (liabilities):
Interest rate derivatives (12) (10) (7) (3) \u2013 (32)
Foreign exchange contracts (67) (38) (33) (6) \u2013 (144)
Fuel derivatives (14) (13) (18) \u2013 \u2013 (45)
December 31, 2021 (4,816) (1,663) (3,220) (8,580) (9,348) (27,627)
g Offsetting financial assets and liabilities The Group enters into derivative transactions under ISDA (International Swaps and Derivatives Association) documentation. In general, under such agreements the amounts owed by each counterparty on a single day in respect of all transactions outstanding are aggregated into a single net amount that is payable by one party to the other. The following financial assets and liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements. December 31, 2022 \u20ac million Gross value of financial instruments Gross amounts set off in the Balance sheet 1 Net amounts of financial instruments in the Balance sheet Related amounts not offset in the Balance sheet 1 Net amount Financial assets Derivative financial assets 760 (34) 726 (5) 721 Financial liabilities Derivative financial liabilities 505 (34) 471 5 476 1 The Group has pledged cash and cash equivalents as collateral against certain of its derivative financial liabilities. As December 31, 2022, the Group recognised \u20acnil of collateral (2021: \u20acnil) offset in the balance sheet and \u20ac5 million (2021: \u20ac30 million) not offset in the Balance sheet. December 31, 2021 \u20ac million Gross value of financial instruments Gross amounts set off in the Balance sheet Net amounts of financial instruments in the Balance sheet Related amounts not offset in the Balance sheet Net amount Financial assets Derivative financial assets 628 (8) 620 (30) 590 Financial liabilities Derivative financial liabilities 181 (8) 173 30 203 h Capital risk management The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern, to maintain an optimal capital structure, to reduce the cost of capital and to provide returns to shareholders. The Group monitors capital on the basis of the net debt to EBITDA before exceptional items ratio. For the year to December 31, 2022, the net debt to EBITDA before exceptional items was 3.1 times (2021: minus 11.5 times). The definition and calculation for this performance measure is included in the Alternative performance measures section. Further detail on liquidity and capital resources and capital risk management is disclosed in the going concern section in note 2. i Managing interest rate benchmark reform and associated risks Overview A reform of major interest rate benchmarks is being undertaken globally, including the replacement of certain interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to as \u2018IBOR reform\u2019). The Group has exposures to IBORs on its financial instruments that are expected to mature subsequent to December 31, 2022, and as such will be replaced as part of these market-wide initiatives. The Group anticipates that IBOR reform will impact its risk management and hedge accounting. During 2020 the Group established an IBOR transition working group and project plan, led by Group Treasury. This project has and continues to consider the required changes to systems, processes, risk management and valuation models, as well as managing any accounting and tax implications. During the course of 2022, the Group, and the counterparties to the financial instruments, have transitioned the majority of such instruments to an alternative benchmark rate and in order to enable such transitions, changes to systems, processes and models have been implemented. Those financial instruments that have not transitioned at December 31, 2022 relate to those with a US dollar LIBOR component, which is not expected to convert to an alternative risk-free rate until mid-2023, subject to further consultation. Reforms to the Euro Interbank Offered Rate (EURIBOR) methodology to enable it to meet the criteria of a risk-free rate were completed in 2019. As such the Group expects to continue to utilise financial instruments with a EURIBOR component without transitioning to an alternative benchmark rate. Derivative and non-derivative financial instruments and hedge accounting While the Group has transitioned a number of its derivative and non-derivative financial instruments to an alternative benchmark rate, certain interest rate swap derivative financial instruments and non-derivative financial instruments continue to have their floating legs indexed to US dollar LIBOR. For derivative financial instruments there is no uncertainty associated with IBOR reform as at December 31, 2022, as such instruments either mature prior to the date of withdrawal of the US dollar LIBOR, or where maturity is subsequent to the date of withdrawal of the US dollar LIBOR, the final pricing date for such instruments is prior to the date of withdrawal. Accordingly, the Group does not intend to transition such instruments to an alternative benchmark and these derivatives continue to be recognised as hedging instruments in hedge relationships, with the hedged item being those non-derivative financial instruments indexed to US dollar LIBOR. Non-derivative financial instruments predominantly relate to those lease liabilities with a US dollar LIBOR component. The Group has such leases with a limited number of counterparties for which the Group expects to transition to an alternative benchmark by June 30, 2023. The table below provides an overview of the IBOR-related exposures as at December 31, 2022. Non-derivative financial instruments are presented on the basis of their carrying values, while derivative financial instruments are presented on the basis of their nominal amounts. \u20ac million Non- derivative financial instruments \u2013 carrying value Derivative financial instruments \u2013 nominal amount US dollar LIBOR 461 305",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-654": {
"value": "a Fuel price risk The Group is exposed to fuel price risk. In order to mitigate such risk, under the Group\u2019s fuel price risk management strategy a variety of over the counter derivative instruments are entered into. The Group strategy is to hedge a proportion of fuel consumption up to two years within the approved hedging profile. The following table demonstrates the sensitivity of the Group\u2019s principal foreign exchange exposure to a reasonable possible change in the fuel price, based on current market volatility, with all other variables held constant on the result before tax and equity 1 . The sensitivity analysis has been performed on fuel derivatives (both those designated in hedge relationships and those not designated in hedge relationships) at the reporting date only and is not reflective of the impact had the sensitised rates been applied through the duration of th e years to December 31, 2022 and 2021. 2022 2021 Increase/(decrease) in fuel price per cent Effect on result before tax \u20ac million Effect on equity \u20ac million Increase/(decrease) in fuel price per cent Effect on result before tax \u20ac million Effect on equity \u20ac million 45 \u2013 1,402 30 \u2013 834 (45) \u2013 (1,200) (30) \u2013 (520) 1 The sensitivity analysis on equity excludes the sensitivity amounts recognised in the result before tax. During 2022, following a substantial recovery in the global price of crude oil and jet fuel, which continues to be impacted by geopolitical events in Ukraine, the fair value of such net asset derivative instruments was \u20ac87 million at December 31, 2022, representing a decrease of \u20ac201 million since January 1, 2022. b Foreign currency risk The Group is exposed to foreign currency risk on revenue, purchases and borrowings that are denominated in a currency other than the functional currency of the Group (the euro). The currencies in which these transactions are denominated are primarily US dollar and pound sterling. The Group has a number of strategies to hedge foreign currency risk including hedging a proportion of its foreign currency sales and purchases for up to three years. The following table demonstrates the sensitivity of the Group\u2019s principal foreign exchange exposure to a reasonable possible change in the US dollar, pound sterling and Japanese yen exchange rates, based on current market volatility, with all other variables held constant on the result before tax and equity 1 . The sensitivity analysis has been performed on interest-bearing liabilities, lease liabilities and derivatives (both those designated in hedge relationships and those not designated in hedge relationships) denominated in foreign currencies at the reporting date only and is not reflective of the impact had the sensitised rates been applied through the duration of the years to December 31, 2022 and 2021. Strengthening/ (weakening) in US dollar rate per cent Effect on result before tax \u20ac million Effect on equity \u20ac million Strengthening/ (weakening) in pound sterling rate per cent Effect on result before tax \u20ac million Effect on equity \u20ac million Strengthening/ (weakening) in Japanese yen rate per cent Effect on result before tax \u20ac million Effect on equity \u20ac million 2022 20 904 1,299 20 (20) 241 20 (58) (70) (20) (922) (1,161) (20) 18 (241) (20) 58 70 2021 10 255 523 10 (10) 134 10 (17) (41) (10) (260) (481) (10) 10 (134) (10) 17 41 1 The sensitivity analysis on equity, excludes the sensitivity amounts recognised in the result before tax. At December 31, 2022, the fair value of foreign currency net asset derivative instruments was \u20ac108 million, representing a decrease of \u20ac77 million since January 1, 2022. These comprise both derivatives designated in hedge relationships and those derivatives that are not designated into a hedge relationship at inception. Those derivatives not designated in a hedge relationship on inception have their mark-to- market movements recorded directly in the Income statement and recognised within Net currency retranslation (charges)/credits. c Interest rate risk The Group is exposed to changes in interest rates on debt and on cash deposits. In order to mitigate the interest rate risk, the Group\u2019s policies allow a variety of over the counter derivative instruments to be entered into. The following table demonstrates the sensitivity of the Group\u2019s interest rate exposure to a reasonable possible change in the US dollar, euro and sterling interest rates, based on expectations regarding forward rate movements, on the result before tax and equity 1 . The sensitivity analysis has been performed on interest rate derivatives (both those designated in hedge relationships and those not designated in hedge relationships) at the reporting date only and is not reflective of the impact had the sensitised rates been applied through the duration of the years to December 31, 2022 and 2021. Strengthening/ (weakening) in US interest rate Basis points Effect on result before tax \u20ac million Effect on equity \u20ac million Strengthening/ (weakening) in euro interest rate Basis points Effect on result before tax \u20ac million Effect on equity \u20ac million Strengthening/ (weakening) in sterling interest rate Basis points Effect on result before tax \u20ac million Effect on equity \u20ac million 2022 150 \u2013 6 150 5 17 150 (35) \u2013 (150) \u2013 (7) (150) (4) (17) (150) 35 \u2013 2021 50 \u2013 \u2013 50 3 10 50 (2) \u2013 (50) \u2013 \u2013 (50) (3) (9) (50) 2 \u2013 1 The sensitivity analysis on equity excludes the sensitivity amounts recognised in the result before tax. For details regarding the Group\u2019s management of interest rate benchmark reform, refer to note 27i. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-676": {
"value": "b Foreign currency risk The Group is exposed to foreign currency risk on revenue, purchases and borrowings that are denominated in a currency other than the functional currency of the Group (the euro). The currencies in which these transactions are denominated are primarily US dollar and pound sterling. The Group has a number of strategies to hedge foreign currency risk including hedging a proportion of its foreign currency sales and purchases for up to three years. The following table demonstrates the sensitivity of the Group\u2019s principal foreign exchange exposure to a reasonable possible change in the US dollar, pound sterling and Japanese yen exchange rates, based on current market volatility, with all other variables held constant on the result before tax and equity 1 . The sensitivity analysis has been performed on interest-bearing liabilities, lease liabilities and derivatives (both those designated in hedge relationships and those not designated in hedge relationships) denominated in foreign currencies at the reporting date only and is not reflective of the impact had the sensitised rates been applied through the duration of the years to December 31, 2022 and 2021. Strengthening/ (weakening) in US dollar rate per cent Effect on result before tax \u20ac million Effect on equity \u20ac million Strengthening/ (weakening) in pound sterling rate per cent Effect on result before tax \u20ac million Effect on equity \u20ac million Strengthening/ (weakening) in Japanese yen rate per cent Effect on result before tax \u20ac million Effect on equity \u20ac million 2022 20 904 1,299 20 (20) 241 20 (58) (70) (20) (922) (1,161) (20) 18 (241) (20) 58 70 2021 10 255 523 10 (10) 134 10 (17) (41) (10) (260) (481) (10) 10 (134) (10) 17 41 1 The sensitivity analysis on equity, excludes the sensitivity amounts recognised in the result before tax. At December 31, 2022, the fair value of foreign currency net asset derivative instruments was \u20ac108 million, representing a decrease of \u20ac77 million since January 1, 2022. These comprise both derivatives designated in hedge relationships and those derivatives that are not designated into a hedge relationship at inception. Those derivatives not designated in a hedge relationship on inception have their mark-to- market movements recorded directly in the Income statement and recognised within Net currency retranslation (charges)/credits. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-655": {
"value": "d Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The Group has policies and procedures to monitor the risk by assigning limits to each counterparty by underlying exposure and by operating company and by only entering into transactions with counterparties with a very low credit risk. At each period end, the Group assesses the effect of counterparties\u2019 and the Group\u2019s own credit risk on the fair value of derivatives and any ineffectiveness arising is immediately recognised in the Income statement within Other non-operating expenses. d Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The Group has policies and procedures to monitor the risk by assigning limits to each counterparty by underlying exposure and by operating company and by only entering into transactions with counterparties with a very low credit risk. At each period end, the Group assesses the effect of counterparties\u2019 and the Group\u2019s own credit risk on the fair value of derivatives and any ineffectiveness arising is immediately recognised in the Income statement within Other non-operating expenses. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-656": {
"value": "f Liquidity risk The Group invests cash in interest-bearing accounts, time deposits and money market funds, choosing instruments with appropriate maturities or liquidity to retain sufficient headroom to readily generate cash inflows required to manage liquidity risk. The Group has also committed revolving credit facilities. At December 31, 2022 the Group had undrawn overdraft facilities of \u20ac53 million (2021: \u20ac53 million). The Group held the following undrawn general and committed aircraft financing facilities: 2022 Million Currency \u20ac equivalent General facilities 1 Euro facilities expiring between January and March 2023 \u20ac87 87 US dollar facility expiring November 2023 $50 47 Euro facility expiring March 2025 \u20ac300 300 US dollar facility expiring March 2025 $1,755 1,654 Pound sterling facility expiring November 2025 \u00a31,000 1,143 3,231 Committed aircraft facilities US dollar facilities expiring between February and September 2023 2 $386 364 US dollar facility expiring April 2023 2 $273 257 US dollar facilities expiring between October 2023 and March 2024 3 $525 495 1,116 2021 Million Currency \u20ac equivalent General facilities 1 Euro facilities expiring between January and July 2022 \u20ac27 27 Euro facilities expiring March 2023 \u20ac60 60 US dollar facility expiring May 2022 $50 44 US dollar facility expiring March 2024 $1,755 1,556 Pound sterling facility expiring November 2025 \u00a31,000 1,177 2,864 Committed aircraft facilities US dollar facility expiring September 2022 2 $635 563 US dollar facilities expiring March 2024 3 $635 563 1,126 1 The general facilities can be drawn at any time at the discretion of the Group subject to the provision of up to three days\u2019 notice of the intended utilisation, depending on the facility. 2 The aircraft facilities maturing in 2023 are available for specific committed aircraft deliveries. 3 The aircraft facilities maturing between October 2023 and March 2024 (2021: maturing in March 2024) are available for specific committed aircraft deliveries and require the Group to give three months\u2019 notice to the counterparty of its intention to utilise the facilities. The following table analyses the Group\u2019s (outflows) and inflows in respect of financial liabilities and derivative financial instruments into relevant maturity groupings based on the remaining period at December 31 to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows and include interest. \u20ac million Within 6 months 6-12 months 1-2 years 2-5 years More than 5 years Total 2022 Interest-bearing loans and borrowings: Asset financing liabilities (196) (190) (374) (1,081) (2,823) (4,664) Lease liabilities (955) (1,050) (2,120) (3,374) (5,295) (12,794) Fixed rate borrowings (64) (523) (78) (1,242) (757) (2,664) Floating rate borrowings (227) (146) (455) (3,191) \u2013 (4,019) Trade and other payables (5,209) \u2013 (200) \u2013 \u2013 (5,409) Derivative financial instruments (assets): Interest rate derivatives 42 9 12 9 \u2013 72 Foreign exchange contracts 245 195 46 \u2013 \u2013 486 Fuel derivatives 122 62 13 \u2013 \u2013 197 Derivative financial instruments (liabilities): Interest rate derivatives (4) (1) (1) (3) \u2013 (9) Foreign exchange contracts (185) (121) (68) \u2013 \u2013 (374) Fuel derivatives (42) (59) (10) \u2013 \u2013 (111) December 31, 2022 (6,473) (1,824) (3,235) (8,882) (8,875) (29,289) \u20ac million Within 6 months 6-12 months 1-2 years 2-5 years More than 5 years Total 2021 Interest-bearing loans and borrowings: Asset financing liabilities (122) (116) (230) (678) (1,714) (2,860) Lease liabilities (920) (854) (1,814) (3,839) (5,524) (12,951) Fixed rate borrowings (151) (529) (578) (690) (2,094) (4,042) Floating rate borrowings (129) (285) (428) (3,368) (16) (4,226) Other financing liabilities (73) \u2013 \u2013 \u2013 \u2013 (73) Trade and other payables (3,712) \u2013 (208) \u2013 \u2013 (3,920) Derivative financial instruments (assets): Interest rate derivatives \u2013 1 2 3 \u2013 6 Foreign exchange contracts 227 52 46 1 \u2013 326 Fuel derivatives 157 129 48 \u2013 \u2013 334 Derivative financial instruments (liabilities): Interest rate derivatives (12) (10) (7) (3) \u2013 (32) Foreign exchange contracts (67) (38) (33) (6) \u2013 (144) Fuel derivatives (14) (13) (18) \u2013 \u2013 (45) December 31, 2021 (4,816) (1,663) (3,220) (8,580) (9,348) (27,627) ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-658": {
"value": "g Offsetting financial assets and liabilities The Group enters into derivative transactions under ISDA (International Swaps and Derivatives Association) documentation. In general, under such agreements the amounts owed by each counterparty on a single day in respect of all transactions outstanding are aggregated into a single net amount that is payable by one party to the other. The following financial assets and liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements. December 31, 2022 \u20ac million Gross value of financial instruments Gross amounts set off in the Balance sheet 1 Net amounts of financial instruments in the Balance sheet Related amounts not offset in the Balance sheet 1 Net amount Financial assets Derivative financial assets 760 (34) 726 (5) 721 Financial liabilities Derivative financial liabilities 505 (34) 471 5 476 1 The Group has pledged cash and cash equivalents as collateral against certain of its derivative financial liabilities. As December 31, 2022, the Group recognised \u20acnil of collateral (2021: \u20acnil) offset in the balance sheet and \u20ac5 million (2021: \u20ac30 million) not offset in the Balance sheet. December 31, 2021 \u20ac million Gross value of financial instruments Gross amounts set off in the Balance sheet Net amounts of financial instruments in the Balance sheet Related amounts not offset in the Balance sheet Net amount Financial assets Derivative financial assets 628 (8) 620 (30) 590 Financial liabilities Derivative financial liabilities 181 (8) 173 30 203 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOffsettingOfFinancialAssetsAndFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-657": {
"value": "h Capital risk management The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern, to maintain an optimal capital structure, to reduce the cost of capital and to provide returns to shareholders. The Group monitors capital on the basis of the net debt to EBITDA before exceptional items ratio. For the year to December 31, 2022, the net debt to EBITDA before exceptional items was 3.1 times (2021: minus 11.5 times). The definition and calculation for this performance measure is included in the Alternative performance measures section. Further detail on liquidity and capital resources and capital risk management is disclosed in the going concern section in note 2. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-631": {
"value": "28 Financial instruments a Financial assets and liabilities by category The detail of the Group\u2019s \ufb01nancial instruments at December 31, 2022 and December 31, 2021 by nature and classi\ufb01cation for measurement purposes is as follows: December 31, 2022 Financial assets \u20ac million Amortised cost Fair value through Other comprehensive income Fair value through Income statement Non-financial assets Total carrying amount by balance sheet item Non-current assets Other equity investments \u2013 55 \u2013 \u2013 55 Derivative financial instruments \u2013 \u2013 81 \u2013 81 Other non-current assets 180 \u2013 \u2013 182 362 Current assets Trade receivables 1,330 \u2013 \u2013 \u2013 1,330 Other current assets 308 \u2013 \u2013 918 1,226 Derivative financial instruments \u2013 \u2013 645 \u2013 645 Other current interest-bearing deposits 403 \u2013 \u2013 \u2013 403 Cash and cash equivalents 9,196 \u2013 \u2013 \u2013 9,196 Financial liabilities \u20ac million Amortised cost Fair value through Other comprehensive income Fair value through Income statement Non-financial liabilities Total carrying amount by balance sheet item Non-current liabilities Lease liabilities 7,853 \u2013 \u2013 \u2013 7,853 Interest-bearing long-term borrowings 8,692 \u2013 596 \u2013 9,288 Derivative financial instruments \u2013 \u2013 84 \u2013 84 Other long-term liabilities 131 \u2013 \u2013 69 200 Current liabilities Lease liabilities 1,766 \u2013 \u2013 \u2013 1,766 Current portion of long-term borrowings 1,068 \u2013 9 \u2013 1,077 Trade and other payables 4,898 \u2013 \u2013 311 5,209 Derivative financial instruments \u2013 \u2013 387 \u2013 387 December 31, 2021
Financial liabilities
\u20ac million Amortised cost
Fair value
through Other
comprehensive
income
Fair value through
Income statement
Non-financial
liabilities
Total
carrying amount by
balance sheet item
Non-current liabilities
Lease liabilities 8,116 \u2013 \u2013 \u2013 8,116
Interest-bearing long-term borrowings 8,220 \u2013 748 \u2013 8,968
Derivative financial instruments \u2013 \u2013 47 \u2013 47
Other long-term liabilities 132 \u2013 \u2013 76 208
Current liabilities
Lease liabilities 1,521 \u2013 \u2013 \u2013 1,521
Current portion of long-term borrowings 996 \u2013 9 \u2013 1,005
Trade and other payables 3,506 \u2013 \u2013 206 3,712
Derivative financial instruments \u2013 \u2013 126 \u2013 126
b Fair value of financial assets and financial liabilities
The fair values of the Group\u2019s financial instruments are disclosed in hierarchy levels depending on the nature of the inputs used in
determining the fair values and using the following methods and assumptions:
Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. A market is regarded as active if quoted prices are
readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices
represent actual and regularly occurring market transactions on an arm\u2019s length basis. Level 1 methodologies (market values at the balance
sheet date) were used to determine the fair value of listed asset investments classified as equity investments and listed interest-bearing
borrowings. The fair value of financial liabilities and financial assets incorporates own credit risk and counterparty credit risk, respectively.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The
fair value of financial instruments that are not traded in an active market is determined by valuation techniques. These valuation techniques
maximise the use of observable market data where it is available and rely as little as possible on entity-specific estimates.
Derivative instruments are measured based on the market value of instruments with similar terms and conditions using forward pricing
models, which include forward exchange rates, forward interest rates, forward fuel curves and corresponding volatility surface data at the
reporting date. The fair value of derivative financial assets and liabilities are determined as follows, incorporating adjustments for own credit
risk and counterparty credit risk:
\u2022 commodity reference contracts including swaps and options transactions, referenced to (i) CIF NWE cargoes jet fuel; (ii) ICE Gasoil; (iii)
ICE Brent; (iv) ICE Gasoil Brent crack; (v) Jet Differential and (vi) Jet fuel Brent crack - the mark-to-market valuation prices are
determined by reference to current forward curve and standard option pricing valuation models, values are discounted to the reporting
date based on the corresponding interest rate;
\u2022 currency forward and option contracts \u2013 by reference to current forward prices and standard option pricing valuation models, values are
discounted to the reporting date based on the corresponding interest rate; and
\u2022 interest rate swap contracts \u2013 by discounting the future cash flows of the swap contracts at market interest rate valued with the
current forward curve.
The fair value of the Group\u2019s interest-bearing borrowings including leases is determined by discounting the remaining contractual cash
flows at the relevant market interest rates at the balance sheet date. The fair value of the Group\u2019s interest-bearing borrowings is adjusted
for own credit risk.
Financial assets
\u20ac million Amortised cost
Fair value
through Other
comprehensive
income
Fair value through
Income statement Non-financial assets
Total
carrying amount by
balance sheet item
Non-current assets
Other equity investments \u2013 31 \u2013 \u2013 31
Derivative financial instruments
\u2013 \u2013 77 \u2013 77
Other non-current assets
126 10 \u2013 114 250
Current assets
Trade receivables
735 \u2013 \u2013 \u2013 735
Other current assets
363 \u2013 \u2013 597 960
Derivative financial instruments
\u2013 \u2013 543 \u2013 543
Other current interest-bearing deposits
51 \u2013 \u2013 \u2013 51
Cash and cash equivalents
7,892 \u2013 \u2013 \u2013 7,892
Level 3: Inputs for the asset or liability that are not based on observable market data. The principal method of such valuation is performed using a valuation model that considers the present value of the dividend cash flows expected to be generated by the associated assets. For the methodology in the determination of the fair value of the investment in Air Europa Holdings, refer to note 19. The fair value of cash and cash equivalents, other current interest-bearing deposits, trade receivables, other current assets and trade and other payables approximate their carrying value largely due to the short-term maturities of these instruments. The carrying amounts and fair values of the Group\u2019s financial assets and liabilities at December 31, 2022 are as follows: Fair value Carrying value \u20ac million Level 1 Level 2 Level 3 Total Total Financial assets Other equity investments \u2013 \u2013 55 55 55 Other non-current financial assets \u2013 20 \u2013 20 31 Derivative financial assets: Interest rate swaps 1 \u2013 66 \u2013 66 66 Foreign exchange contracts 1 \u2013 467 \u2013 467 467 Fuel derivatives 1 \u2013 193 \u2013 193 193 Financial liabilities Interest-bearing loans and borrowings: Asset financed liabilities \u2013 2,925 \u2013 2,925 3,819 Fixed rate borrowings 2,538 72 \u2013 2,610 2,967 Floating rate borrowings \u2013 3,419 \u2013 3,419 3,579 Derivative financial liabilities: Interest rate derivatives 2 \u2013 6 \u2013 6 6 Foreign exchange contracts 2 \u2013 386 \u2013 386 386 Fuel derivatives 2 \u2013 79 \u2013 79 79 1 Current portion of derivative financial assets is \u20ac645 million. 2 Current portion of derivative financial liabilities is \u20ac387 million. The carrying amounts and fair values of the Group\u2019s financial assets and liabilities at December 31, 2021 are set out below: Fair value Carrying value \u20ac million Level 1 Level 2 Level 3 Total Total Financial assets Other equity investments \u2013 \u2013 31 31 31 Derivative financial assets: Interest rate swaps 1 \u2013 5 \u2013 5 5 Foreign exchange contracts 1 \u2013 314 \u2013 314 314 Fuel derivatives 1 \u2013 301 \u2013 301 301 Financial liabilities Interest-bearing loans and borrowings: Asset financed liabilities \u2013 2,583 \u2013 2,583 2,415 Fixed rate borrowings 3,492 265 \u2013 3,757 3,863 Floating rate borrowings \u2013 3,622 \u2013 3,622 3,622 Other financing liabilities \u2013 73 \u2013 73 73 Derivative financial liabilities: Interest rate derivatives 2 \u2013 31 \u2013 31 31 Foreign exchange contracts 2 \u2013 129 \u2013 129 129 Fuel derivatives 2 \u2013 13 \u2013 13 13 1 Current portion of derivative financial assets is \u20ac543 million. 2 Current portion of derivative financial liabilities is \u20ac126 million. On June 15, 2022, the Group entered into a financing arrangement with Globalia, which was classified as a Level 2 financial asset. On August 16, 2022, the Group exercised the conversion option within the financing arrangement leading to the de-recognition of the Level 2 financial asset and the recognition of an Other equity investment in Air Europa Holdings, which was recorded as an addition to a Level 3 financial asset. Refer to note 19 for further details. There have been no other transfers between levels of the fair value hierarchy during the year. Financial assets, other equity instruments, financial liabilities and derivative financial assets and liabilities are all measured at fair value in the consolidated financial statements. Interest-bearing borrowings, with the exception of the \u20ac825 million convertible bond due 2028 which is measured at fair value, are measured at amortised cost. c Level 3 financial assets reconciliation The following table summarises key movements in Level 3 financial assets: \u20ac million 2022 2021 Opening balance for the year 31 29 Addition of Air Europa Holdings 22 \u2013 Additions - other 2 2 Losses recognised in Income statement (2) \u2013 Gains recognised in Other comprehensive income 2 \u2013 Closing balance for the year 55 31 For details regarding the valuation of Air Europa Holdings, refer to note 19. d Hedges Cash flow hedges At December 31, 2022 the Group\u2019s principal risk management activities that were hedging future forecast transactions were: \u2022 foreign exchange contracts, hedging foreign currency exchange risk on cash inflows and certain operational payments. Remeasurement gains and losses on the derivatives are (i) recognised in equity and transferred to the Income statement, where the hedged item is recorded directly in the Income statement, to the same caption as the underlying hedged item is classified; (ii) recognised in equity and transferred to the Balance sheet, where the hedged item is a non-financial asset or liability, are recorded to the Balance sheet to the same caption as the hedged item is recognised; and (iii) recognised in equity and transferred to the Income statement, where the hedged item is a financial asset or liability, at the same time as the financial asset or liability is recorded in the Income statement. Reclassification gains and losses on derivatives, arising from the discontinuance of hedge accounting, are recognised in the Income statement when the future transaction is no longer expected to occur and recorded in the relevant Income statement caption to which the hedged item is classified; \u2022 forward crude, gas oil and jet kerosene derivative contracts, hedging price risk on fuel expenditure. Remeasurement gains and losses on the derivatives are (i) recognised in equity and transferred to the Income statement within Fuel, oil costs and emissions charges to match against the related fuel cash outflow, where the underlying hedged item does not give rise to the recognition of fuel inventory; and (ii) recognised in equity and transferred to the Balance sheet within Inventory, where the underlying hedged item is fuel inventory. Gains and losses recorded within Inventory are recognised in the Income statement when the underlying fuel inventory is consumed, within Fuel, oil costs and emission charges. Reclassification gains and losses on derivatives, arising from the discontinuance of hedge accounting, are recognised in the Income statement within Fuel, oil costs and emissions charges when the future transaction is no longer expected to occur; \u2022 interest rate contracts, hedging interest rate risk on floating rate debt and certain operational payments. Remeasurement gains and losses on the derivatives are recognised in equity and transferred to the Income statement within Interest expense; and \u2022 future loan repayments denominated in foreign currency are designated in a hedge relationship hedging foreign exchange fluctuations on revenue cash inflows. Remeasurement gains and losses on the associated loans are recognised in equity and transferred to the Balance sheet, where the hedged item is a non-financial asset or liability when the loan repayments are made (generally in instalments over the life of the loan). The amounts included in equity are summarised below: (Gains)/losses in respect of cash flow hedges included within equity \u20ac million 2022 2021 Loan repayments to hedge future revenue 87 98 Foreign exchange contracts to hedge future revenue and expenditure 1 (178) 25 Crude, gas oil and jet kerosene derivative contracts 1 (127) (276) Derivatives used to hedge interest rates 1 (46) 58 Instruments for which hedge accounting no longer applies 1, 2 213 247 (51) 152 Related deferred tax charge/(credit) 20 (24) Total amount included within equity (31) 128 1 The carrying value of derivative instruments recognised in assets and liabilities is analysed in parts a and b above. 2 Relates to previously terminated hedge relationships for which the underlying forecast transactions remain expected to occur. The notional amounts of significant financial instruments used as cash flow hedging instruments are set out below, with the prior period presentation amended to reflect the current presentation: Notional principal amounts (\u20ac million) Average hedge rate Hedge range Within 1 year 1-2 years 2-5 years 5+ years Total December 31, 2022 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to pound sterling 1 1.23 1.05 to 1.45 3,582 1,355 \u2013 \u2013 4,937 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to euros 1 1.08 0.91 to 1.26 2,578 1,318 \u2013 \u2013 3,896 Foreign exchange contracts to hedge future revenue and expenditure from euros to pound sterling 1 1.23 1.00 to 1.42 371 406 458 14 1,249 Fuel commodity price contracts to hedge future US dollar fuel expenditure 2 718 416 to 2,200 2,935 331 \u2013 \u2013 3,266 Interest rate contracts to hedge future interest expenditure 3 1.04 (0.03) to 3.13 2,360 504 238 9 3,111 1 Expenditure includes both operating and capital expenditure. 2 Notional amounts of fuel commodity price hedging instruments represent 5.4 million metric tonnes of jet fuel equivalent and the hedge range is expressed as the US dollar price per metric tonne, which for those products typically priced in barrels, has been determined using a conversion factor of 7.88. 3 The hedge range for interest rate contracts is expressed as a percentage. Notional principal amounts (\u20ac million) Average hedge rate Hedge range Within 1 year 1-2 years 2-5 years 5+ years Total December 31, 2021 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to pound sterling 1 1.31 1.15 to 1.45 2,606 1,030 42 \u2013 3,678 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to euros 1 1.18 1.08 to 1.32 1,632 735 26 \u2013 2,393 Foreign exchange contracts to hedge future revenue and expenditure from euros to pound sterling 1 1.23 1.08 to 1.42 396 334 543 166 1,439 Fuel commodity price contracts to hedge future US dollar fuel expenditure 2 649 395 to 737 2,386 826 \u2013 \u2013 3,212 Interest rate contracts to hedge future interest expenditure 3 1.40 (0.03) to 3.13 3,099 1,080 738 60 4,977 1 Expenditure includes both operating and capital expenditure. 2 Notional amounts of fuel commodity price hedging instruments represent 5.8 million metric tonnes of jet fuel equivalent and the hedge range is expressed as the US dollar price per metric tonne, which for those products typically priced in barrels, has been determined using a conversion factor of 7.88. 3 The hedge range for interest rate contracts is expressed as a percentage. Amounts recognised in the Income statement For the year to December 31, 2022 (\u20ac million) Ineffectiveness 1 Discontinuance of hedge accounting Recycling to the Income Statement Total recognised movements Fair value movements recognised in Other comprehensive income 2 Amounts reclassified to the Balance sheet Foreign exchange contracts to hedge future revenue and expenditure \u2013 29 228 257 (525) 43 Crude, gas oil and jet kerosene derivative contracts 19 \u2013 1,299 1,318 (1,249) 66 Derivatives used to hedge interest rates \u2013 \u2013 (12) (12) (95) \u2013 Loan repayments to hedge future revenue \u2013 \u2013 \u2013 \u2013 (1) (7) Instruments for which hedge accounting no longer applies \u2013 \u2013 \u2013 \u2013 \u2013 (27) 19 29 1,515 1,563 (1,870) 75 Related deferred tax (330) 398 (1) Total movements recorded in the cash flow hedge reserve 1,233 (1,472) 74 1 Ineffectiveness recognised in the Income statement is presented as Realised and Unrealised gains and losses on derivatives not qualifying for hedge accounting within non-operating items. 2 Amounts recognised in Other comprehensive income represent gains and losses on the hedging instrument. Amounts recognised in the Income statement For the year to December 31, 2022 (\u20ac million) Ineffectiveness 1 Discontinuance of hedge accounting Recycling to the Income Statement Total recognised movements Fair value movements recognised in Other comprehensive income 2 Amounts reclassified to the Balance sheet Foreign exchange contracts to hedge future revenue and expenditure \u2013 29 228 257 (525) 43 Crude, gas oil and jet kerosene derivative contracts 19 \u2013 1,299 1,318 (1,249) 66 Derivatives used to hedge interest rates \u2013 \u2013 (12) (12) (95) \u2013 Loan repayments to hedge future revenue \u2013 \u2013 \u2013 \u2013 (1) (7) Instruments for which hedge accounting no longer applies \u2013 \u2013 \u2013 \u2013 \u2013 (27) 19 29 1,515 1,563 (1,870) 75 Related deferred tax (330) 398 (1) Total movements recorded in the cash flow hedge reserve 1,233 (1,472) 74 1 Ineffectiveness recognised in the Income statement is presented as Realised and Unrealised gains and losses on derivatives not qualifying for hedge accounting within non-operating items. 2 Amounts recognised in Other comprehensive income represent gains and losses on the hedging instrument. Amounts recognised in the Income statement For the year to December 31, 2021 (\u20ac million) Ineffectiveness 1 Discontinuance of hedge accounting Recycling to the Income Statement Total recognised movements Fair value movements recognised in Other comprehensive income 2 Amounts reclassified to the Balance sheet Foreign exchange contracts to hedge future revenue and expenditure \u2013 4 39 43 (178) (24) Crude, gas oil and jet kerosene derivative contracts (1) 73 88 160 (737) \u2013 Derivatives used to hedge interest rates \u2013 \u2013 (29) (29) 21 \u2013 Loan repayments to hedge future revenue \u2013 \u2013 (15) (15) (120) \u2013 Instruments for which hedge accounting no longer applies \u2013 \u2013 (54) (54) \u2013 \u2013 (1) 77 29 105 (1,014) (24) Related deferred tax (24) 166 3 Total movements recorded in the cash flow hedge reserve 81 (848) (21) 1 Ineffectiveness recognised in the Income statement is presented as Realised and Unrealised gains and losses on derivatives not qualifying for hedge accounting within non-operating items. 2 Amounts recognised in Other comprehensive income represent gains and losses on the hedging instrument. The losses associated with the discontinuance of hedge accounting recognised in the Income statement and the subsequent fair value movements of those derivative instruments recorded in the Income statement through to the earlier of the reporting date and the maturity date of the derivative are set out below: \u20ac million 2022 2021 Gains associated with the discontinuance of hedge accounting recognised in the Income statement (29) (77) Fair value movements subsequently recorded in the Income statement \u2013 (82) Total effect of discontinuance of hedge accounting in the Income statement (29) (159) The Group has no significant fair value hedges at December 31, 2022 and 2021. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-677": {
"value": "28 Financial instruments a Financial assets and liabilities by category The detail of the Group\u2019s \ufb01nancial instruments at December 31, 2022 and December 31, 2021 by nature and classi\ufb01cation for measurement purposes is as follows: December 31, 2022 Financial assets \u20ac million Amortised cost Fair value through Other comprehensive income Fair value through Income statement Non-financial assets Total carrying amount by balance sheet item Non-current assets Other equity investments \u2013 55 \u2013 \u2013 55 Derivative financial instruments \u2013 \u2013 81 \u2013 81 Other non-current assets 180 \u2013 \u2013 182 362 Current assets Trade receivables 1,330 \u2013 \u2013 \u2013 1,330 Other current assets 308 \u2013 \u2013 918 1,226 Derivative financial instruments \u2013 \u2013 645 \u2013 645 Other current interest-bearing deposits 403 \u2013 \u2013 \u2013 403 Cash and cash equivalents 9,196 \u2013 \u2013 \u2013 9,196 Financial liabilities \u20ac million Amortised cost Fair value through Other comprehensive income Fair value through Income statement Non-financial liabilities Total carrying amount by balance sheet item Non-current liabilities Lease liabilities 7,853 \u2013 \u2013 \u2013 7,853 Interest-bearing long-term borrowings 8,692 \u2013 596 \u2013 9,288 Derivative financial instruments \u2013 \u2013 84 \u2013 84 Other long-term liabilities 131 \u2013 \u2013 69 200 Current liabilities Lease liabilities 1,766 \u2013 \u2013 \u2013 1,766 Current portion of long-term borrowings 1,068 \u2013 9 \u2013 1,077 Trade and other payables 4,898 \u2013 \u2013 311 5,209 Derivative financial instruments \u2013 \u2013 387 \u2013 387 December 31, 2021 Financial liabilities \u20ac million Amortised cost Fair value through Other comprehensive income Fair value through Income statement Non-financial liabilities Total carrying amount by balance sheet item Non-current liabilities Lease liabilities 8,116 \u2013 \u2013 \u2013 8,116 Interest-bearing long-term borrowings 8,220 \u2013 748 \u2013 8,968 Derivative financial instruments \u2013 \u2013 47 \u2013 47 Other long-term liabilities 132 \u2013 \u2013 76 208 Current liabilities Lease liabilities 1,521 \u2013 \u2013 \u2013 1,521 Current portion of long-term borrowings 996 \u2013 9 \u2013 1,005 Trade and other payables 3,506 \u2013 \u2013 206 3,712 Derivative financial instruments \u2013 \u2013 126 \u2013 126 b Fair value of financial assets and financial liabilities The fair values of the Group\u2019s financial instruments are disclosed in hierarchy levels depending on the nature of the inputs used in determining the fair values and using the following methods and assumptions: Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm\u2019s length basis. Level 1 methodologies (market values at the balance sheet date) were used to determine the fair value of listed asset investments classified as equity investments and listed interest-bearing borrowings. The fair value of financial liabilities and financial assets incorporates own credit risk and counterparty credit risk, respectively. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of financial instruments that are not traded in an active market is determined by valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity-specific estimates. Derivative instruments are measured based on the market value of instruments with similar terms and conditions using forward pricing models, which include forward exchange rates, forward interest rates, forward fuel curves and corresponding volatility surface data at the reporting date. The fair value of derivative financial assets and liabilities are determined as follows, incorporating adjustments for own credit risk and counterparty credit risk: \u2022 commodity reference contracts including swaps and options transactions, referenced to (i) CIF NWE cargoes jet fuel; (ii) ICE Gasoil; (iii) ICE Brent; (iv) ICE Gasoil Brent crack; (v) Jet Differential and (vi) Jet fuel Brent crack - the mark-to-market valuation prices are determined by reference to current forward curve and standard option pricing valuation models, values are discounted to the reporting date based on the corresponding interest rate; \u2022 currency forward and option contracts \u2013 by reference to current forward prices and standard option pricing valuation models, values are discounted to the reporting date based on the corresponding interest rate; and \u2022 interest rate swap contracts \u2013 by discounting the future cash flows of the swap contracts at market interest rate valued with the current forward curve. The fair value of the Group\u2019s interest-bearing borrowings including leases is determined by discounting the remaining contractual cash flows at the relevant market interest rates at the balance sheet date. The fair value of the Group\u2019s interest-bearing borrowings is adjusted for own credit risk. Financial assets \u20ac million Amortised cost Fair value through Other comprehensive income Fair value through Income statement Non-financial assets Total carrying amount by balance sheet item Non-current assets Other equity investments \u2013 31 \u2013 \u2013 31 Derivative financial instruments \u2013 \u2013 77 \u2013 77 Other non-current assets 126 10 \u2013 114 250 Current assets Trade receivables 735 \u2013 \u2013 \u2013 735 Other current assets 363 \u2013 \u2013 597 960 Derivative financial instruments \u2013 \u2013 543 \u2013 543 Other current interest-bearing deposits 51 \u2013 \u2013 \u2013 51 Cash and cash equivalents 7,892 \u2013 \u2013 \u2013 7,892 Level 3: Inputs for the asset or liability that are not based on observable market data. The principal method of such valuation is performed using a valuation model that considers the present value of the dividend cash flows expected to be generated by the associated assets. For the methodology in the determination of the fair value of the investment in Air Europa Holdings, refer to note 19. The fair value of cash and cash equivalents, other current interest-bearing deposits, trade receivables, other current assets and trade and other payables approximate their carrying value largely due to the short-term maturities of these instruments. The carrying amounts and fair values of the Group\u2019s financial assets and liabilities at December 31, 2022 are as follows: Fair value Carrying value \u20ac million Level 1 Level 2 Level 3 Total Total Financial assets Other equity investments \u2013 \u2013 55 55 55 Other non-current financial assets \u2013 20 \u2013 20 31 Derivative financial assets: Interest rate swaps 1 \u2013 66 \u2013 66 66 Foreign exchange contracts 1 \u2013 467 \u2013 467 467 Fuel derivatives 1 \u2013 193 \u2013 193 193 Financial liabilities Interest-bearing loans and borrowings: Asset financed liabilities \u2013 2,925 \u2013 2,925 3,819 Fixed rate borrowings 2,538 72 \u2013 2,610 2,967 Floating rate borrowings \u2013 3,419 \u2013 3,419 3,579 Derivative financial liabilities: Interest rate derivatives 2 \u2013 6 \u2013 6 6 Foreign exchange contracts 2 \u2013 386 \u2013 386 386 Fuel derivatives 2 \u2013 79 \u2013 79 79 1 Current portion of derivative financial assets is \u20ac645 million. 2 Current portion of derivative financial liabilities is \u20ac387 million. The carrying amounts and fair values of the Group\u2019s financial assets and liabilities at December 31, 2021 are set out below: Fair value Carrying value \u20ac million Level 1 Level 2 Level 3 Total Total Financial assets Other equity investments \u2013 \u2013 31 31 31 Derivative financial assets: Interest rate swaps 1 \u2013 5 \u2013 5 5 Foreign exchange contracts 1 \u2013 314 \u2013 314 314 Fuel derivatives 1 \u2013 301 \u2013 301 301 Financial liabilities Interest-bearing loans and borrowings: Asset financed liabilities \u2013 2,583 \u2013 2,583 2,415 Fixed rate borrowings 3,492 265 \u2013 3,757 3,863 Floating rate borrowings \u2013 3,622 \u2013 3,622 3,622 Other financing liabilities \u2013 73 \u2013 73 73 Derivative financial liabilities: Interest rate derivatives 2 \u2013 31 \u2013 31 31 Foreign exchange contracts 2 \u2013 129 \u2013 129 129 Fuel derivatives 2 \u2013 13 \u2013 13 13 1 Current portion of derivative financial assets is \u20ac543 million. 2 Current portion of derivative financial liabilities is \u20ac126 million. On June 15, 2022, the Group entered into a financing arrangement with Globalia, which was classified as a Level 2 financial asset. On August 16, 2022, the Group exercised the conversion option within the financing arrangement leading to the de-recognition of the Level 2 financial asset and the recognition of an Other equity investment in Air Europa Holdings, which was recorded as an addition to a Level 3 financial asset. Refer to note 19 for further details. There have been no other transfers between levels of the fair value hierarchy during the year. Financial assets, other equity instruments, financial liabilities and derivative financial assets and liabilities are all measured at fair value in the consolidated financial statements. Interest-bearing borrowings, with the exception of the \u20ac825 million convertible bond due 2028 which is measured at fair value, are measured at amortised cost. c Level 3 financial assets reconciliation The following table summarises key movements in Level 3 financial assets: \u20ac million 2022 2021 Opening balance for the year 31 29 Addition of Air Europa Holdings 22 \u2013 Additions - other 2 2 Losses recognised in Income statement (2) \u2013 Gains recognised in Other comprehensive income 2 \u2013 Closing balance for the year 55 31 For details regarding the valuation of Air Europa Holdings, refer to note 19. d Hedges Cash flow hedges At December 31, 2022 the Group\u2019s principal risk management activities that were hedging future forecast transactions were: \u2022 foreign exchange contracts, hedging foreign currency exchange risk on cash inflows and certain operational payments. Remeasurement gains and losses on the derivatives are (i) recognised in equity and transferred to the Income statement, where the hedged item is recorded directly in the Income statement, to the same caption as the underlying hedged item is classified; (ii) recognised in equity and transferred to the Balance sheet, where the hedged item is a non-financial asset or liability, are recorded to the Balance sheet to the same caption as the hedged item is recognised; and (iii) recognised in equity and transferred to the Income statement, where the hedged item is a financial asset or liability, at the same time as the financial asset or liability is recorded in the Income statement. Reclassification gains and losses on derivatives, arising from the discontinuance of hedge accounting, are recognised in the Income statement when the future transaction is no longer expected to occur and recorded in the relevant Income statement caption to which the hedged item is classified; \u2022 forward crude, gas oil and jet kerosene derivative contracts, hedging price risk on fuel expenditure. Remeasurement gains and losses on the derivatives are (i) recognised in equity and transferred to the Income statement within Fuel, oil costs and emissions charges to match against the related fuel cash outflow, where the underlying hedged item does not give rise to the recognition of fuel inventory; and (ii) recognised in equity and transferred to the Balance sheet within Inventory, where the underlying hedged item is fuel inventory. Gains and losses recorded within Inventory are recognised in the Income statement when the underlying fuel inventory is consumed, within Fuel, oil costs and emission charges. Reclassification gains and losses on derivatives, arising from the discontinuance of hedge accounting, are recognised in the Income statement within Fuel, oil costs and emissions charges when the future transaction is no longer expected to occur; \u2022 interest rate contracts, hedging interest rate risk on floating rate debt and certain operational payments. Remeasurement gains and losses on the derivatives are recognised in equity and transferred to the Income statement within Interest expense; and \u2022 future loan repayments denominated in foreign currency are designated in a hedge relationship hedging foreign exchange fluctuations on revenue cash inflows. Remeasurement gains and losses on the associated loans are recognised in equity and transferred to the Balance sheet, where the hedged item is a non-financial asset or liability when the loan repayments are made (generally in instalments over the life of the loan). The amounts included in equity are summarised below: (Gains)/losses in respect of cash flow hedges included within equity \u20ac million 2022 2021 Loan repayments to hedge future revenue 87 98 Foreign exchange contracts to hedge future revenue and expenditure 1 (178) 25 Crude, gas oil and jet kerosene derivative contracts 1 (127) (276) Derivatives used to hedge interest rates 1 (46) 58 Instruments for which hedge accounting no longer applies 1, 2 213 247 (51) 152 Related deferred tax charge/(credit) 20 (24) Total amount included within equity (31) 128 1 The carrying value of derivative instruments recognised in assets and liabilities is analysed in parts a and b above. 2 Relates to previously terminated hedge relationships for which the underlying forecast transactions remain expected to occur. The notional amounts of significant financial instruments used as cash flow hedging instruments are set out below, with the prior period presentation amended to reflect the current presentation: Notional principal amounts (\u20ac million) Average hedge rate Hedge range Within 1 year 1-2 years 2-5 years 5+ years Total December 31, 2022 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to pound sterling 1 1.23 1.05 to 1.45 3,582 1,355 \u2013 \u2013 4,937 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to euros 1 1.08 0.91 to 1.26 2,578 1,318 \u2013 \u2013 3,896 Foreign exchange contracts to hedge future revenue and expenditure from euros to pound sterling 1 1.23 1.00 to 1.42 371 406 458 14 1,249 Fuel commodity price contracts to hedge future US dollar fuel expenditure 2 718 416 to 2,200 2,935 331 \u2013 \u2013 3,266 Interest rate contracts to hedge future interest expenditure 3 1.04 (0.03) to 3.13 2,360 504 238 9 3,111 1 Expenditure includes both operating and capital expenditure. 2 Notional amounts of fuel commodity price hedging instruments represent 5.4 million metric tonnes of jet fuel equivalent and the hedge range is expressed as the US dollar price per metric tonne, which for those products typically priced in barrels, has been determined using a conversion factor of 7.88. 3 The hedge range for interest rate contracts is expressed as a percentage. Notional principal amounts (\u20ac million) Average hedge rate Hedge range Within 1 year 1-2 years 2-5 years 5+ years Total December 31, 2021 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to pound sterling 1 1.31 1.15 to 1.45 2,606 1,030 42 \u2013 3,678 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to euros 1 1.18 1.08 to 1.32 1,632 735 26 \u2013 2,393 Foreign exchange contracts to hedge future revenue and expenditure from euros to pound sterling 1 1.23 1.08 to 1.42 396 334 543 166 1,439 Fuel commodity price contracts to hedge future US dollar fuel expenditure 2 649 395 to 737 2,386 826 \u2013 \u2013 3,212 Interest rate contracts to hedge future interest expenditure 3 1.40 (0.03) to 3.13 3,099 1,080 738 60 4,977 1 Expenditure includes both operating and capital expenditure. 2 Notional amounts of fuel commodity price hedging instruments represent 5.8 million metric tonnes of jet fuel equivalent and the hedge range is expressed as the US dollar price per metric tonne, which for those products typically priced in barrels, has been determined using a conversion factor of 7.88. 3 The hedge range for interest rate contracts is expressed as a percentage. Amounts recognised in the Income statement For the year to December 31, 2022 (\u20ac million) Ineffectiveness 1 Discontinuance of hedge accounting Recycling to the Income Statement Total recognised movements Fair value movements recognised in Other comprehensive income 2 Amounts reclassified to the Balance sheet Foreign exchange contracts to hedge future revenue and expenditure \u2013 29 228 257 (525) 43 Crude, gas oil and jet kerosene derivative contracts 19 \u2013 1,299 1,318 (1,249) 66 Derivatives used to hedge interest rates \u2013 \u2013 (12) (12) (95) \u2013 Loan repayments to hedge future revenue \u2013 \u2013 \u2013 \u2013 (1) (7) Instruments for which hedge accounting no longer applies \u2013 \u2013 \u2013 \u2013 \u2013 (27) 19 29 1,515 1,563 (1,870) 75 Related deferred tax (330) 398 (1) Total movements recorded in the cash flow hedge reserve 1,233 (1,472) 74 1 Ineffectiveness recognised in the Income statement is presented as Realised and Unrealised gains and losses on derivatives not qualifying for hedge accounting within non-operating items. 2 Amounts recognised in Other comprehensive income represent gains and losses on the hedging instrument. Amounts recognised in the Income statement For the year to December 31, 2022 (\u20ac million) Ineffectiveness 1 Discontinuance of hedge accounting Recycling to the Income Statement Total recognised movements Fair value movements recognised in Other comprehensive income 2 Amounts reclassified to the Balance sheet Foreign exchange contracts to hedge future revenue and expenditure \u2013 29 228 257 (525) 43 Crude, gas oil and jet kerosene derivative contracts 19 \u2013 1,299 1,318 (1,249) 66 Derivatives used to hedge interest rates \u2013 \u2013 (12) (12) (95) \u2013 Loan repayments to hedge future revenue \u2013 \u2013 \u2013 \u2013 (1) (7) Instruments for which hedge accounting no longer applies \u2013 \u2013 \u2013 \u2013 \u2013 (27) 19 29 1,515 1,563 (1,870) 75 Related deferred tax (330) 398 (1) Total movements recorded in the cash flow hedge reserve 1,233 (1,472) 74 1 Ineffectiveness recognised in the Income statement is presented as Realised and Unrealised gains and losses on derivatives not qualifying for hedge accounting within non-operating items. 2 Amounts recognised in Other comprehensive income represent gains and losses on the hedging instrument. Amounts recognised in the Income statement For the year to December 31, 2021 (\u20ac million) Ineffectiveness 1 Discontinuance of hedge accounting Recycling to the Income Statement Total recognised movements Fair value movements recognised in Other comprehensive income 2 Amounts reclassified to the Balance sheet Foreign exchange contracts to hedge future revenue and expenditure \u2013 4 39 43 (178) (24) Crude, gas oil and jet kerosene derivative contracts (1) 73 88 160 (737) \u2013 Derivatives used to hedge interest rates \u2013 \u2013 (29) (29) 21 \u2013 Loan repayments to hedge future revenue \u2013 \u2013 (15) (15) (120) \u2013 Instruments for which hedge accounting no longer applies \u2013 \u2013 (54) (54) \u2013 \u2013 (1) 77 29 105 (1,014) (24) Related deferred tax (24) 166 3 Total movements recorded in the cash flow hedge reserve 81 (848) (21) 1 Ineffectiveness recognised in the Income statement is presented as Realised and Unrealised gains and losses on derivatives not qualifying for hedge accounting within non-operating items. 2 Amounts recognised in Other comprehensive income represent gains and losses on the hedging instrument. The losses associated with the discontinuance of hedge accounting recognised in the Income statement and the subsequent fair value movements of those derivative instruments recorded in the Income statement through to the earlier of the reporting date and the maturity date of the derivative are set out below: \u20ac million 2022 2021 Gains associated with the discontinuance of hedge accounting recognised in the Income statement (29) (77) Fair value movements subsequently recorded in the Income statement \u2013 (82) Total effect of discontinuance of hedge accounting in the Income statement (29) (159) The Group has no significant fair value hedges at December 31, 2022 and 2021. ",
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"fact-659": {
"value": "a Financial assets and liabilities by category The detail of the Group\u2019s \ufb01nancial instruments at December 31, 2022 and December 31, 2021 by nature and classi\ufb01cation for measurement purposes is as follows: December 31, 2022 Financial assets \u20ac million Amortised cost Fair value through Other comprehensive income Fair value through Income statement Non-financial assets Total carrying amount by balance sheet item Non-current assets Other equity investments \u2013 55 \u2013 \u2013 55 Derivative financial instruments \u2013 \u2013 81 \u2013 81 Other non-current assets 180 \u2013 \u2013 182 362 Current assets Trade receivables 1,330 \u2013 \u2013 \u2013 1,330 Other current assets 308 \u2013 \u2013 918 1,226 Derivative financial instruments \u2013 \u2013 645 \u2013 645 Other current interest-bearing deposits 403 \u2013 \u2013 \u2013 403 Cash and cash equivalents 9,196 \u2013 \u2013 \u2013 9,196 Financial liabilities \u20ac million Amortised cost Fair value through Other comprehensive income Fair value through Income statement Non-financial liabilities Total carrying amount by balance sheet item Non-current liabilities Lease liabilities 7,853 \u2013 \u2013 \u2013 7,853 Interest-bearing long-term borrowings 8,692 \u2013 596 \u2013 9,288 Derivative financial instruments \u2013 \u2013 84 \u2013 84 Other long-term liabilities 131 \u2013 \u2013 69 200 Current liabilities Lease liabilities 1,766 \u2013 \u2013 \u2013 1,766 Current portion of long-term borrowings 1,068 \u2013 9 \u2013 1,077 Trade and other payables 4,898 \u2013 \u2013 311 5,209 Derivative financial instruments \u2013 \u2013 387 \u2013 387 December 31, 2021 Financial liabilities \u20ac million Amortised cost Fair value through Other comprehensive income Fair value through Income statement Non-financial liabilities Total carrying amount by balance sheet item Non-current liabilities Lease liabilities 8,116 \u2013 \u2013 \u2013 8,116 Interest-bearing long-term borrowings 8,220 \u2013 748 \u2013 8,968 Derivative financial instruments \u2013 \u2013 47 \u2013 47 Other long-term liabilities 132 \u2013 \u2013 76 208 Current liabilities Lease liabilities 1,521 \u2013 \u2013 \u2013 1,521 Current portion of long-term borrowings 996 \u2013 9 \u2013 1,005 Trade and other payables 3,506 \u2013 \u2013 206 3,712 Derivative financial instruments \u2013 \u2013 126 \u2013 126 Financial assets \u20ac million Amortised cost Fair value through Other comprehensive income Fair value through Income statement Non-financial assets Total carrying amount by balance sheet item Non-current assets Other equity investments \u2013 31 \u2013 \u2013 31 Derivative financial instruments \u2013 \u2013 77 \u2013 77 Other non-current assets 126 10 \u2013 114 250 Current assets Trade receivables 735 \u2013 \u2013 \u2013 735 Other current assets 363 \u2013 \u2013 597 960 Derivative financial instruments \u2013 \u2013 543 \u2013 543 Other current interest-bearing deposits 51 \u2013 \u2013 \u2013 51 Cash and cash equivalents 7,892 \u2013 \u2013 \u2013 7,892 ",
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"fact-687": {
"value": "b Fair value of financial assets and financial liabilities The fair values of the Group\u2019s financial instruments are disclosed in hierarchy levels depending on the nature of the inputs used in determining the fair values and using the following methods and assumptions: Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm\u2019s length basis. Level 1 methodologies (market values at the balance sheet date) were used to determine the fair value of listed asset investments classified as equity investments and listed interest-bearing borrowings. The fair value of financial liabilities and financial assets incorporates own credit risk and counterparty credit risk, respectively. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of financial instruments that are not traded in an active market is determined by valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity-specific estimates. Derivative instruments are measured based on the market value of instruments with similar terms and conditions using forward pricing models, which include forward exchange rates, forward interest rates, forward fuel curves and corresponding volatility surface data at the reporting date. The fair value of derivative financial assets and liabilities are determined as follows, incorporating adjustments for own credit risk and counterparty credit risk: \u2022 commodity reference contracts including swaps and options transactions, referenced to (i) CIF NWE cargoes jet fuel; (ii) ICE Gasoil; (iii) ICE Brent; (iv) ICE Gasoil Brent crack; (v) Jet Differential and (vi) Jet fuel Brent crack - the mark-to-market valuation prices are determined by reference to current forward curve and standard option pricing valuation models, values are discounted to the reporting date based on the corresponding interest rate; \u2022 currency forward and option contracts \u2013 by reference to current forward prices and standard option pricing valuation models, values are discounted to the reporting date based on the corresponding interest rate; and \u2022 interest rate swap contracts \u2013 by discounting the future cash flows of the swap contracts at market interest rate valued with the current forward curve. The fair value of the Group\u2019s interest-bearing borrowings including leases is determined by discounting the remaining contractual cash flows at the relevant market interest rates at the balance sheet date. The fair value of the Group\u2019s interest-bearing borrowings is adjusted for own credit risk. Level 3: Inputs for the asset or liability that are not based on observable market data. The principal method of such valuation is performed using a valuation model that considers the present value of the dividend cash flows expected to be generated by the associated assets. For the methodology in the determination of the fair value of the investment in Air Europa Holdings, refer to note 19. The fair value of cash and cash equivalents, other current interest-bearing deposits, trade receivables, other current assets and trade and other payables approximate their carrying value largely due to the short-term maturities of these instruments. The carrying amounts and fair values of the Group\u2019s financial assets and liabilities at December 31, 2022 are as follows: Fair value Carrying value \u20ac million Level 1 Level 2 Level 3 Total Total Financial assets Other equity investments \u2013 \u2013 55 55 55 Other non-current financial assets \u2013 20 \u2013 20 31 Derivative financial assets: Interest rate swaps 1 \u2013 66 \u2013 66 66 Foreign exchange contracts 1 \u2013 467 \u2013 467 467 Fuel derivatives 1 \u2013 193 \u2013 193 193 Financial liabilities Interest-bearing loans and borrowings: Asset financed liabilities \u2013 2,925 \u2013 2,925 3,819 Fixed rate borrowings 2,538 72 \u2013 2,610 2,967 Floating rate borrowings \u2013 3,419 \u2013 3,419 3,579 Derivative financial liabilities: Interest rate derivatives 2 \u2013 6 \u2013 6 6 Foreign exchange contracts 2 \u2013 386 \u2013 386 386 Fuel derivatives 2 \u2013 79 \u2013 79 79 1 Current portion of derivative financial assets is \u20ac645 million. 2 Current portion of derivative financial liabilities is \u20ac387 million. The carrying amounts and fair values of the Group\u2019s financial assets and liabilities at December 31, 2021 are set out below: Fair value Carrying value \u20ac million Level 1 Level 2 Level 3 Total Total Financial assets Other equity investments \u2013 \u2013 31 31 31 Derivative financial assets: Interest rate swaps 1 \u2013 5 \u2013 5 5 Foreign exchange contracts 1 \u2013 314 \u2013 314 314 Fuel derivatives 1 \u2013 301 \u2013 301 301 Financial liabilities Interest-bearing loans and borrowings: Asset financed liabilities \u2013 2,583 \u2013 2,583 2,415 Fixed rate borrowings 3,492 265 \u2013 3,757 3,863 Floating rate borrowings \u2013 3,622 \u2013 3,622 3,622 Other financing liabilities \u2013 73 \u2013 73 73 Derivative financial liabilities: Interest rate derivatives 2 \u2013 31 \u2013 31 31 Foreign exchange contracts 2 \u2013 129 \u2013 129 129 Fuel derivatives 2 \u2013 13 \u2013 13 13 1 Current portion of derivative financial assets is \u20ac543 million. 2 Current portion of derivative financial liabilities is \u20ac126 million. On June 15, 2022, the Group entered into a financing arrangement with Globalia, which was classified as a Level 2 financial asset. On August 16, 2022, the Group exercised the conversion option within the financing arrangement leading to the de-recognition of the Level 2 financial asset and the recognition of an Other equity investment in Air Europa Holdings, which was recorded as an addition to a Level 3 financial asset. Refer to note 19 for further details. There have been no other transfers between levels of the fair value hierarchy during the year. Financial assets, other equity instruments, financial liabilities and derivative financial assets and liabilities are all measured at fair value in the consolidated financial statements. Interest-bearing borrowings, with the exception of the \u20ac825 million convertible bond due 2028 which is measured at fair value, are measured at amortised cost. c Level 3 financial assets reconciliation The following table summarises key movements in Level 3 financial assets: \u20ac million 2022 2021 Opening balance for the year 31 29 Addition of Air Europa Holdings 22 \u2013 Additions - other 2 2 Losses recognised in Income statement (2) \u2013 Gains recognised in Other comprehensive income 2 \u2013 Closing balance for the year 55 31 For details regarding the valuation of Air Europa Holdings, refer to note 19. ",
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"fact-708": {
"value": "b Fair value of financial assets and financial liabilities The fair values of the Group\u2019s financial instruments are disclosed in hierarchy levels depending on the nature of the inputs used in determining the fair values and using the following methods and assumptions: Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm\u2019s length basis. Level 1 methodologies (market values at the balance sheet date) were used to determine the fair value of listed asset investments classified as equity investments and listed interest-bearing borrowings. The fair value of financial liabilities and financial assets incorporates own credit risk and counterparty credit risk, respectively. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of financial instruments that are not traded in an active market is determined by valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity-specific estimates. Derivative instruments are measured based on the market value of instruments with similar terms and conditions using forward pricing models, which include forward exchange rates, forward interest rates, forward fuel curves and corresponding volatility surface data at the reporting date. The fair value of derivative financial assets and liabilities are determined as follows, incorporating adjustments for own credit risk and counterparty credit risk: \u2022 commodity reference contracts including swaps and options transactions, referenced to (i) CIF NWE cargoes jet fuel; (ii) ICE Gasoil; (iii) ICE Brent; (iv) ICE Gasoil Brent crack; (v) Jet Differential and (vi) Jet fuel Brent crack - the mark-to-market valuation prices are determined by reference to current forward curve and standard option pricing valuation models, values are discounted to the reporting date based on the corresponding interest rate; \u2022 currency forward and option contracts \u2013 by reference to current forward prices and standard option pricing valuation models, values are discounted to the reporting date based on the corresponding interest rate; and \u2022 interest rate swap contracts \u2013 by discounting the future cash flows of the swap contracts at market interest rate valued with the current forward curve. The fair value of the Group\u2019s interest-bearing borrowings including leases is determined by discounting the remaining contractual cash flows at the relevant market interest rates at the balance sheet date. The fair value of the Group\u2019s interest-bearing borrowings is adjusted for own credit risk. Level 3: Inputs for the asset or liability that are not based on observable market data. The principal method of such valuation is performed using a valuation model that considers the present value of the dividend cash flows expected to be generated by the associated assets. For the methodology in the determination of the fair value of the investment in Air Europa Holdings, refer to note 19. The fair value of cash and cash equivalents, other current interest-bearing deposits, trade receivables, other current assets and trade and other payables approximate their carrying value largely due to the short-term maturities of these instruments.",
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"fact-660": {
"value": "b Fair value of financial assets and financial liabilities The fair values of the Group\u2019s financial instruments are disclosed in hierarchy levels depending on the nature of the inputs used in determining the fair values and using the following methods and assumptions: Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm\u2019s length basis. Level 1 methodologies (market values at the balance sheet date) were used to determine the fair value of listed asset investments classified as equity investments and listed interest-bearing borrowings. The fair value of financial liabilities and financial assets incorporates own credit risk and counterparty credit risk, respectively. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of financial instruments that are not traded in an active market is determined by valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity-specific estimates. Derivative instruments are measured based on the market value of instruments with similar terms and conditions using forward pricing models, which include forward exchange rates, forward interest rates, forward fuel curves and corresponding volatility surface data at the reporting date. The fair value of derivative financial assets and liabilities are determined as follows, incorporating adjustments for own credit risk and counterparty credit risk: \u2022 commodity reference contracts including swaps and options transactions, referenced to (i) CIF NWE cargoes jet fuel; (ii) ICE Gasoil; (iii) ICE Brent; (iv) ICE Gasoil Brent crack; (v) Jet Differential and (vi) Jet fuel Brent crack - the mark-to-market valuation prices are determined by reference to current forward curve and standard option pricing valuation models, values are discounted to the reporting date based on the corresponding interest rate; \u2022 currency forward and option contracts \u2013 by reference to current forward prices and standard option pricing valuation models, values are discounted to the reporting date based on the corresponding interest rate; and \u2022 interest rate swap contracts \u2013 by discounting the future cash flows of the swap contracts at market interest rate valued with the current forward curve. The fair value of the Group\u2019s interest-bearing borrowings including leases is determined by discounting the remaining contractual cash flows at the relevant market interest rates at the balance sheet date. The fair value of the Group\u2019s interest-bearing borrowings is adjusted for own credit risk. Level 3: Inputs for the asset or liability that are not based on observable market data. The principal method of such valuation is performed using a valuation model that considers the present value of the dividend cash flows expected to be generated by the associated assets. For the methodology in the determination of the fair value of the investment in Air Europa Holdings, refer to note 19. The fair value of cash and cash equivalents, other current interest-bearing deposits, trade receivables, other current assets and trade and other payables approximate their carrying value largely due to the short-term maturities of these instruments. The carrying amounts and fair values of the Group\u2019s financial assets and liabilities at December 31, 2022 are as follows: Fair value Carrying value \u20ac million Level 1 Level 2 Level 3 Total Total Financial assets Other equity investments \u2013 \u2013 55 55 55 Other non-current financial assets \u2013 20 \u2013 20 31 Derivative financial assets: Interest rate swaps 1 \u2013 66 \u2013 66 66 Foreign exchange contracts 1 \u2013 467 \u2013 467 467 Fuel derivatives 1 \u2013 193 \u2013 193 193 Financial liabilities Interest-bearing loans and borrowings: Asset financed liabilities \u2013 2,925 \u2013 2,925 3,819 Fixed rate borrowings 2,538 72 \u2013 2,610 2,967 Floating rate borrowings \u2013 3,419 \u2013 3,419 3,579 Derivative financial liabilities: Interest rate derivatives 2 \u2013 6 \u2013 6 6 Foreign exchange contracts 2 \u2013 386 \u2013 386 386 Fuel derivatives 2 \u2013 79 \u2013 79 79 1 Current portion of derivative financial assets is \u20ac645 million. 2 Current portion of derivative financial liabilities is \u20ac387 million. The carrying amounts and fair values of the Group\u2019s financial assets and liabilities at December 31, 2021 are set out below: Fair value Carrying value \u20ac million Level 1 Level 2 Level 3 Total Total Financial assets Other equity investments \u2013 \u2013 31 31 31 Derivative financial assets: Interest rate swaps 1 \u2013 5 \u2013 5 5 Foreign exchange contracts 1 \u2013 314 \u2013 314 314 Fuel derivatives 1 \u2013 301 \u2013 301 301 Financial liabilities Interest-bearing loans and borrowings: Asset financed liabilities \u2013 2,583 \u2013 2,583 2,415 Fixed rate borrowings 3,492 265 \u2013 3,757 3,863 Floating rate borrowings \u2013 3,622 \u2013 3,622 3,622 Other financing liabilities \u2013 73 \u2013 73 73 Derivative financial liabilities: Interest rate derivatives 2 \u2013 31 \u2013 31 31 Foreign exchange contracts 2 \u2013 129 \u2013 129 129 Fuel derivatives 2 \u2013 13 \u2013 13 13 1 Current portion of derivative financial assets is \u20ac543 million. 2 Current portion of derivative financial liabilities is \u20ac126 million. On June 15, 2022, the Group entered into a financing arrangement with Globalia, which was classified as a Level 2 financial asset. On August 16, 2022, the Group exercised the conversion option within the financing arrangement leading to the de-recognition of the Level 2 financial asset and the recognition of an Other equity investment in Air Europa Holdings, which was recorded as an addition to a Level 3 financial asset. Refer to note 19 for further details. There have been no other transfers between levels of the fair value hierarchy during the year. Financial assets, other equity instruments, financial liabilities and derivative financial assets and liabilities are all measured at fair value in the consolidated financial statements. Interest-bearing borrowings, with the exception of the \u20ac825 million convertible bond due 2028 which is measured at fair value, are measured at amortised cost. ",
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"fact-661": {
"value": "d Hedges Cash flow hedges At December 31, 2022 the Group\u2019s principal risk management activities that were hedging future forecast transactions were: \u2022 foreign exchange contracts, hedging foreign currency exchange risk on cash inflows and certain operational payments. Remeasurement gains and losses on the derivatives are (i) recognised in equity and transferred to the Income statement, where the hedged item is recorded directly in the Income statement, to the same caption as the underlying hedged item is classified; (ii) recognised in equity and transferred to the Balance sheet, where the hedged item is a non-financial asset or liability, are recorded to the Balance sheet to the same caption as the hedged item is recognised; and (iii) recognised in equity and transferred to the Income statement, where the hedged item is a financial asset or liability, at the same time as the financial asset or liability is recorded in the Income statement. Reclassification gains and losses on derivatives, arising from the discontinuance of hedge accounting, are recognised in the Income statement when the future transaction is no longer expected to occur and recorded in the relevant Income statement caption to which the hedged item is classified; \u2022 forward crude, gas oil and jet kerosene derivative contracts, hedging price risk on fuel expenditure. Remeasurement gains and losses on the derivatives are (i) recognised in equity and transferred to the Income statement within Fuel, oil costs and emissions charges to match against the related fuel cash outflow, where the underlying hedged item does not give rise to the recognition of fuel inventory; and (ii) recognised in equity and transferred to the Balance sheet within Inventory, where the underlying hedged item is fuel inventory. Gains and losses recorded within Inventory are recognised in the Income statement when the underlying fuel inventory is consumed, within Fuel, oil costs and emission charges. Reclassification gains and losses on derivatives, arising from the discontinuance of hedge accounting, are recognised in the Income statement within Fuel, oil costs and emissions charges when the future transaction is no longer expected to occur; \u2022 interest rate contracts, hedging interest rate risk on floating rate debt and certain operational payments. Remeasurement gains and losses on the derivatives are recognised in equity and transferred to the Income statement within Interest expense; and \u2022 future loan repayments denominated in foreign currency are designated in a hedge relationship hedging foreign exchange fluctuations on revenue cash inflows. Remeasurement gains and losses on the associated loans are recognised in equity and transferred to the Balance sheet, where the hedged item is a non-financial asset or liability when the loan repayments are made (generally in instalments over the life of the loan). The amounts included in equity are summarised below: (Gains)/losses in respect of cash flow hedges included within equity \u20ac million 2022 2021 Loan repayments to hedge future revenue 87 98 Foreign exchange contracts to hedge future revenue and expenditure 1 (178) 25 Crude, gas oil and jet kerosene derivative contracts 1 (127) (276) Derivatives used to hedge interest rates 1 (46) 58 Instruments for which hedge accounting no longer applies 1, 2 213 247 (51) 152 Related deferred tax charge/(credit) 20 (24) Total amount included within equity (31) 128 1 The carrying value of derivative instruments recognised in assets and liabilities is analysed in parts a and b above. 2 Relates to previously terminated hedge relationships for which the underlying forecast transactions remain expected to occur. The notional amounts of significant financial instruments used as cash flow hedging instruments are set out below, with the prior period presentation amended to reflect the current presentation: Notional principal amounts (\u20ac million) Average hedge rate Hedge range Within 1 year 1-2 years 2-5 years 5+ years Total December 31, 2022 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to pound sterling 1 1.23 1.05 to 1.45 3,582 1,355 \u2013 \u2013 4,937 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to euros 1 1.08 0.91 to 1.26 2,578 1,318 \u2013 \u2013 3,896 Foreign exchange contracts to hedge future revenue and expenditure from euros to pound sterling 1 1.23 1.00 to 1.42 371 406 458 14 1,249 Fuel commodity price contracts to hedge future US dollar fuel expenditure 2 718 416 to 2,200 2,935 331 \u2013 \u2013 3,266 Interest rate contracts to hedge future interest expenditure 3 1.04 (0.03) to 3.13 2,360 504 238 9 3,111 1 Expenditure includes both operating and capital expenditure. 2 Notional amounts of fuel commodity price hedging instruments represent 5.4 million metric tonnes of jet fuel equivalent and the hedge range is expressed as the US dollar price per metric tonne, which for those products typically priced in barrels, has been determined using a conversion factor of 7.88. 3 The hedge range for interest rate contracts is expressed as a percentage. Notional principal amounts (\u20ac million) Average hedge rate Hedge range Within 1 year 1-2 years 2-5 years 5+ years Total December 31, 2021 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to pound sterling 1 1.31 1.15 to 1.45 2,606 1,030 42 \u2013 3,678 Foreign exchange contracts to hedge future revenue and expenditure from US dollars to euros 1 1.18 1.08 to 1.32 1,632 735 26 \u2013 2,393 Foreign exchange contracts to hedge future revenue and expenditure from euros to pound sterling 1 1.23 1.08 to 1.42 396 334 543 166 1,439 Fuel commodity price contracts to hedge future US dollar fuel expenditure 2 649 395 to 737 2,386 826 \u2013 \u2013 3,212 Interest rate contracts to hedge future interest expenditure 3 1.40 (0.03) to 3.13 3,099 1,080 738 60 4,977 1 Expenditure includes both operating and capital expenditure. 2 Notional amounts of fuel commodity price hedging instruments represent 5.8 million metric tonnes of jet fuel equivalent and the hedge range is expressed as the US dollar price per metric tonne, which for those products typically priced in barrels, has been determined using a conversion factor of 7.88. 3 The hedge range for interest rate contracts is expressed as a percentage. Amounts recognised in the Income statement For the year to December 31, 2022 (\u20ac million) Ineffectiveness 1 Discontinuance of hedge accounting Recycling to the Income Statement Total recognised movements Fair value movements recognised in Other comprehensive income 2 Amounts reclassified to the Balance sheet Foreign exchange contracts to hedge future revenue and expenditure \u2013 29 228 257 (525) 43 Crude, gas oil and jet kerosene derivative contracts 19 \u2013 1,299 1,318 (1,249) 66 Derivatives used to hedge interest rates \u2013 \u2013 (12) (12) (95) \u2013 Loan repayments to hedge future revenue \u2013 \u2013 \u2013 \u2013 (1) (7) Instruments for which hedge accounting no longer applies \u2013 \u2013 \u2013 \u2013 \u2013 (27) 19 29 1,515 1,563 (1,870) 75 Related deferred tax (330) 398 (1) Total movements recorded in the cash flow hedge reserve 1,233 (1,472) 74 1 Ineffectiveness recognised in the Income statement is presented as Realised and Unrealised gains and losses on derivatives not qualifying for hedge accounting within non-operating items. 2 Amounts recognised in Other comprehensive income represent gains and losses on the hedging instrument. Amounts recognised in the Income statement For the year to December 31, 2021 (\u20ac million) Ineffectiveness 1 Discontinuance of hedge accounting Recycling to the Income Statement Total recognised movements Fair value movements recognised in Other comprehensive income 2 Amounts reclassified to the Balance sheet Foreign exchange contracts to hedge future revenue and expenditure \u2013 4 39 43 (178) (24) Crude, gas oil and jet kerosene derivative contracts (1) 73 88 160 (737) \u2013 Derivatives used to hedge interest rates \u2013 \u2013 (29) (29) 21 \u2013 Loan repayments to hedge future revenue \u2013 \u2013 (15) (15) (120) \u2013 Instruments for which hedge accounting no longer applies \u2013 \u2013 (54) (54) \u2013 \u2013 (1) 77 29 105 (1,014) (24) Related deferred tax (24) 166 3 Total movements recorded in the cash flow hedge reserve 81 (848) (21) 1 Ineffectiveness recognised in the Income statement is presented as Realised and Unrealised gains and losses on derivatives not qualifying for hedge accounting within non-operating items. 2 Amounts recognised in Other comprehensive income represent gains and losses on the hedging instrument. The losses associated with the discontinuance of hedge accounting recognised in the Income statement and the subsequent fair value movements of those derivative instruments recorded in the Income statement through to the earlier of the reporting date and the maturity date of the derivative are set out below: \u20ac million 2022 2021 Gains associated with the discontinuance of hedge accounting recognised in the Income statement (29) (77) Fair value movements subsequently recorded in the Income statement \u2013 (82) Total effect of discontinuance of hedge accounting in the Income statement (29) (159) The Group has no significant fair value hedges at December 31, 2022 and 2021.",
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},
"fact-662": {
"value": "29 Share capital, share premium and treasury shares Allotted, called up and fully paid Number of shares '000s Ordinary share capital \u20ac million Share premium \u20ac million December 31, 2021: Ordinary shares of \u20ac0.10 each 4,971,476 497 7,770 December 31, 2022: Ordinary shares of \u20ac0.10 each 4,971,476 497 7,770 a Treasury shares The treasury shares balance consists of shares held directly by the Group. During the year to December 31, 2022, the Group purchased 15.0 million shares at a weighted average share price of \u20ac1.51 per share totalling \u20ac23 million, which are held as Treasury shares. A total of 8.1 million shares (2021: 5.4 million) were issued to employees during the year as a result of vesting of employee share schemes. At December 31, 2022 the Group held 17.1 million shares (2021: 10.2 million) which represented 0.34 per cent (2021: 0.20 per cent) of the issued share capital of the Company. ",
"dimensions": {
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-632": {
"value": "29 Share capital, share premium and treasury shares Allotted, called up and fully paid Number of shares '000s Ordinary share capital \u20ac million Share premium \u20ac million December 31, 2021: Ordinary shares of \u20ac0.10 each 4,971,476 497 7,770 December 31, 2022: Ordinary shares of \u20ac0.10 each 4,971,476 497 7,770 a Treasury shares The treasury shares balance consists of shares held directly by the Group. During the year to December 31, 2022, the Group purchased 15.0 million shares at a weighted average share price of \u20ac1.51 per share totalling \u20ac23 million, which are held as Treasury shares. A total of 8.1 million shares (2021: 5.4 million) were issued to employees during the year as a result of vesting of employee share schemes. At December 31, 2022 the Group held 17.1 million shares (2021: 10.2 million) which represented 0.34 per cent (2021: 0.20 per cent) of the issued share capital of the Company. 31 Other reserves and non-controlling interests For the year to December 31, 2022 Other reserves \u20ac million Unrealised gains and losses 1 Cost of hedging reserve 2 Currency translation 3 Equity portion of convertible bond 4 Merger reserve 5 Capital reserves 6 Total other reserves Non- controlling interest January 1, 2022 (94) 24 (65) 62 (2,467) 867 (1,673) 6 Other comprehensive income for the year Cash flow hedges reclassified and reported in net profit: Fuel and oil costs (1,115) \u2013 \u2013 \u2013 \u2013 \u2013 (1,115) \u2013 Currency differences (90) \u2013 \u2013 \u2013 \u2013 \u2013 (90) \u2013 Finance costs 10 \u2013 \u2013 \u2013 \u2013 \u2013 10 \u2013 Discontinuance of hedge accounting (22) \u2013 \u2013 \u2013 \u2013 \u2013 (22) \u2013 Ineffectiveness recognised in other non-operating costs (16) \u2013 \u2013 \u2013 \u2013 \u2013 (16) \u2013 Net change in fair value of cash flow hedges 1,472 \u2013 \u2013 \u2013 \u2013 \u2013 1,472 \u2013 Net change in fair value of other equity investments 2 \u2013 \u2013 \u2013 \u2013 \u2013 2 \u2013 Net change in fair value of cost of hedging \u2013 (115) \u2013 \u2013 \u2013 \u2013 (115) \u2013 Cost of hedging reclassified and reported in net profit \u2013 38 \u2013 \u2013 \u2013 \u2013 38 \u2013 Fair value movements on liabilities attributable to credit risk changes (6) \u2013 \u2013 \u2013 \u2013 \u2013 (6) \u2013 Currency translation differences \u2013 \u2013 (53) \u2013 \u2013 \u2013 (53) \u2013 Hedges reclassified and reported in property, plant and equipment (51) (14) \u2013 \u2013 \u2013 \u2013 (65) \u2013 Hedges reclassified and reported in sales in advance of carriage 35 1 \u2013 \u2013 \u2013 \u2013 36 \u2013 Hedges reclassified and reported in inventory (58) \u2013 \u2013 \u2013 \u2013 \u2013 (58) \u2013 Redemption of convertible bond \u2013 \u2013 \u2013 (62) \u2013 \u2013 (62) \u2013 December 31, 2022 67 (66) (118) \u2013 (2,467) 867 (1,717) 6 Other reserves \u20ac million Unrealised gains and losses 1 Cost of hedging reserve 2 Currency translation 3 Equity portion of convertible bond 4 Merger reserve 5 Redeemed capital reserve 6 Total other reserves Non- controlling interest January 1, 2021 (867) 38 (53) 62 (2,467) 867 (2,420) 6 Other comprehensive income for the year Cash flow hedges reclassified and reported in net loss: Passenger revenue 18 \u2013 \u2013 \u2013 \u2013 \u2013 18 \u2013 Fuel and oil costs (45) \u2013 \u2013 \u2013 \u2013 \u2013 (45) \u2013 Currency differences (15) \u2013 \u2013 \u2013 \u2013 \u2013 (15) \u2013 Finance costs 23 \u2013 \u2013 \u2013 \u2013 \u2013 23 \u2013 Discontinuance of hedge accounting (62) \u2013 \u2013 \u2013 \u2013 \u2013 (62) \u2013 Net change in fair value of cash flow hedges 848 \u2013 \u2013 \u2013 \u2013 \u2013 848 \u2013 Net change in fair value of cost of hedging \u2013 10 \u2013 \u2013 \u2013 \u2013 10 \u2013 Cost of hedging reclassified and reported in net profit \u2013 (12) \u2013 \u2013 \u2013 \u2013 (12) \u2013 Fair value movements on liabilities attributable to credit risk changes (15) \u2013 \u2013 \u2013 \u2013 \u2013 (15) Currency translation differences \u2013 \u2013 (12) \u2013 \u2013 \u2013 (12) \u2013 Hedges reclassified and reported in property, plant and equipment 21 (12) \u2013 \u2013 \u2013 \u2013 9 \u2013 December 31, 2021 (94) 24 (65) 62 (2,467) 867 (1,673) 6 1 The unrealised gains and losses reserve records fair value changes on equity investments and the portion of the amounts on hedging instruments in cash flow hedges that are determined to be effective hedges. The amounts at December 31, 2022 that relate to the fair value changes on equity instruments and to the cash flow hedge reserve were \u20ac11 million credit and \u20ac56 million credit, respectively. 2 The cost of hedging reserve records, amongst others, changes on the time value of options. 3 The currency translation reserve records exchange differences arising from the translation of the financial statements of non-euro functional currency subsidiaries and investments accounted for under the equity method into the Group\u2019s reporting currency of euros. The movement through this reserve is affected by the fluctuations in the pound sterling to euro foreign exchange translation rate. 4 At December 31, 2021 the equity portion of convertible bond reserve represented the equity portion of the \u20ac500 million fixed rate 0.625 per cent convertible bond that matured in 2022. During 2022 the Group redeemed the \u20ac500 million convertible bond with no conversion into ordinary shares. On redemption, an amount of \u20ac62 million was transferred to Retained earnings. 5 The merger reserve originated from the merger transaction between British Airways and Iberia. The balance represents the difference between the fair value of the Group on the transaction date, and the fair value of Iberia and the book value of British Airways (including its reserves). 6 Capital reserves include a Redeemed capital reserve of \u20ac70 million (2021: \u20ac70 million) associated with the decrease in share capital relating to cancelled shares and a Share capital reduction reserve of \u20ac797 million (2021: \u20ac797 million) associated with a reduction in the nominal value of the Company\u2019s share capital (note 29). ",
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}
},
"fact-678": {
"value": "a Treasury shares The treasury shares balance consists of shares held directly by the Group. During the year to December 31, 2022, the Group purchased 15.0 million shares at a weighted average share price of \u20ac1.51 per share totalling \u20ac23 million, which are held as Treasury shares. A total of 8.1 million shares (2021: 5.4 million) were issued to employees during the year as a result of vesting of employee share schemes. At December 31, 2022 the Group held 17.1 million shares (2021: 10.2 million) which represented 0.34 per cent (2021: 0.20 per cent) of the issued share capital of the Company. ",
"dimensions": {
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-633": {
"value": "30 Share-based payments The Group operates share-based payment schemes as part of the total remuneration package provided to employees. These schemes comprise both share option schemes where employees acquire shares at an option price and share award plans whereby shares are issued to employees at no cost, subject to the achievement by the Group of specified performance targets. a IAG Performance Share Plan The IAG Performance Share Plan (PSP) is granted to senior executives and managers of the Group who are most directly involved in shaping and delivering business success over the medium to long term. Since 2015, awards have been made as nil-cost options, with a two- year holding period following the three-year performance period, before options can be exercised. All awards since 2015 have three independent performance measures with equal weighting: Total Shareholder Return (TSR) relative to the STOXX Europe 600 Travel and Leisure Index (for 2020 awards) or MSCI European Transportation Index (for prior to 2020 awards), earnings per share, and Return on Invested Capital. b IAG Restricted Share Plan During 2021, the Group revised its approach to long-term incentives, replacing the existing PSP with a Restricted Share Plan (RSP) proposal under the new Executive Share Plan approved by shareholders in June 2021. The RSP was introduced to increase the alignment of both interests and outcomes between the Group\u2019s senior management and shareholders through the build-up and maintenance of senior management shareholdings and an increased focus on the long-term, sustainable performance of the Group. Awards have been made as nil-cost options, with a two-year holding period following the three-year performance period, before options vest. There are no performance measures associated with the awards, although approval at the end of the vesting period will be at the discretion of the Remuneration Committee, considering the Group\u2019s overall performance, including financial and non-financial performance measures over the course of the vesting period, as well as any material risk or regulatory failures identified. c IAG Full Potential Incentive Plan During 2021, the Group launched the new Full Potential Incentive Plan (FPIP), which is granted to key individuals involved in the delivery of a series of transformation projects that will enable the Group to deliver business success over the medium to long term. The awards have been made as nil-cost options, vesting in 2025 and dependent on stretch performance targets for 2024 and the approval of the Board. d IAG Incentive Award Deferral Plan The IAG Incentive Award Deferral Plan (IADP) is granted to qualifying employees based on performance and service tests. It will be awarded when an incentive award is triggered subject to the employee remaining in employment with the Group for three years after the grant date. The relevant population will receive 50 per cent of their incentive award up front in cash, and the remaining 50 per cent in shares after three years through the IADP. e Share-based payment schemes summary Outstanding at January 1, 2022 Granted number Lapsed number Vested number Outstanding at December 31, 2022 Exercisable December 31, 2022 \u2018000s \u2018000s \u2018000s \u2018000s \u2018000s \u2018000s Performance Share Plan 24,706 \u2013 5,273 3,094 16,339 3,683 Restricted Share Plan 16,198 26,796 1,911 749 40,334 \u2013 Full Potential Incentive Plan 27,879 2,386 2,560 \u2013 27,705 \u2013 Incentive Award Deferral Plan 5,359 111 96 2,963 2,411 \u2013 74,142 29,293 9,840 6,806 86,789 3,683 The weighted average share price at the date of exercise of options exercised during the year to December 31, 2022 was \u00a31.35 (2021: \u00a31.78). The Group recognised a share-based payment charge of \u20ac39 million for the year to December 31, 2022 (2021: \u20ac23 million).",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-688": {
"value": "31 Other reserves and non-controlling interests For the year to December 31, 2022 Other reserves \u20ac million Unrealised gains and losses 1 Cost of hedging reserve 2 Currency translation 3 Equity portion of convertible bond 4 Merger reserve 5 Capital reserves 6 Total other reserves Non- controlling interest January 1, 2022 (94) 24 (65) 62 (2,467) 867 (1,673) 6 Other comprehensive income for the year Cash flow hedges reclassified and reported in net profit: Fuel and oil costs (1,115) \u2013 \u2013 \u2013 \u2013 \u2013 (1,115) \u2013 Currency differences (90) \u2013 \u2013 \u2013 \u2013 \u2013 (90) \u2013 Finance costs 10 \u2013 \u2013 \u2013 \u2013 \u2013 10 \u2013 Discontinuance of hedge accounting (22) \u2013 \u2013 \u2013 \u2013 \u2013 (22) \u2013 Ineffectiveness recognised in other non-operating costs (16) \u2013 \u2013 \u2013 \u2013 \u2013 (16) \u2013 Net change in fair value of cash flow hedges 1,472 \u2013 \u2013 \u2013 \u2013 \u2013 1,472 \u2013 Net change in fair value of other equity investments 2 \u2013 \u2013 \u2013 \u2013 \u2013 2 \u2013 Net change in fair value of cost of hedging \u2013 (115) \u2013 \u2013 \u2013 \u2013 (115) \u2013 Cost of hedging reclassified and reported in net profit \u2013 38 \u2013 \u2013 \u2013 \u2013 38 \u2013 Fair value movements on liabilities attributable to credit risk changes (6) \u2013 \u2013 \u2013 \u2013 \u2013 (6) \u2013 Currency translation differences \u2013 \u2013 (53) \u2013 \u2013 \u2013 (53) \u2013 Hedges reclassified and reported in property, plant and equipment (51) (14) \u2013 \u2013 \u2013 \u2013 (65) \u2013 Hedges reclassified and reported in sales in advance of carriage 35 1 \u2013 \u2013 \u2013 \u2013 36 \u2013 Hedges reclassified and reported in inventory (58) \u2013 \u2013 \u2013 \u2013 \u2013 (58) \u2013 Redemption of convertible bond \u2013 \u2013 \u2013 (62) \u2013 \u2013 (62) \u2013 December 31, 2022 67 (66) (118) \u2013 (2,467) 867 (1,717) 6 Other reserves \u20ac million Unrealised gains and losses 1 Cost of hedging reserve 2 Currency translation 3 Equity portion of convertible bond 4 Merger reserve 5 Redeemed capital reserve 6 Total other reserves Non- controlling interest January 1, 2021 (867) 38 (53) 62 (2,467) 867 (2,420) 6 Other comprehensive income for the year Cash flow hedges reclassified and reported in net loss: Passenger revenue 18 \u2013 \u2013 \u2013 \u2013 \u2013 18 \u2013 Fuel and oil costs (45) \u2013 \u2013 \u2013 \u2013 \u2013 (45) \u2013 Currency differences (15) \u2013 \u2013 \u2013 \u2013 \u2013 (15) \u2013 Finance costs 23 \u2013 \u2013 \u2013 \u2013 \u2013 23 \u2013 Discontinuance of hedge accounting (62) \u2013 \u2013 \u2013 \u2013 \u2013 (62) \u2013 Net change in fair value of cash flow hedges 848 \u2013 \u2013 \u2013 \u2013 \u2013 848 \u2013 Net change in fair value of cost of hedging \u2013 10 \u2013 \u2013 \u2013 \u2013 10 \u2013 Cost of hedging reclassified and reported in net profit \u2013 (12) \u2013 \u2013 \u2013 \u2013 (12) \u2013 Fair value movements on liabilities attributable to credit risk changes (15) \u2013 \u2013 \u2013 \u2013 \u2013 (15) Currency translation differences \u2013 \u2013 (12) \u2013 \u2013 \u2013 (12) \u2013 Hedges reclassified and reported in property, plant and equipment 21 (12) \u2013 \u2013 \u2013 \u2013 9 \u2013 December 31, 2021 (94) 24 (65) 62 (2,467) 867 (1,673) 6 1 The unrealised gains and losses reserve records fair value changes on equity investments and the portion of the amounts on hedging instruments in cash flow hedges that are determined to be effective hedges. The amounts at December 31, 2022 that relate to the fair value changes on equity instruments and to the cash flow hedge reserve were \u20ac11 million credit and \u20ac56 million credit, respectively. 2 The cost of hedging reserve records, amongst others, changes on the time value of options. 3 The currency translation reserve records exchange differences arising from the translation of the financial statements of non-euro functional currency subsidiaries and investments accounted for under the equity method into the Group\u2019s reporting currency of euros. The movement through this reserve is affected by the fluctuations in the pound sterling to euro foreign exchange translation rate. 4 At December 31, 2021 the equity portion of convertible bond reserve represented the equity portion of the \u20ac500 million fixed rate 0.625 per cent convertible bond that matured in 2022. During 2022 the Group redeemed the \u20ac500 million convertible bond with no conversion into ordinary shares. On redemption, an amount of \u20ac62 million was transferred to Retained earnings. 5 The merger reserve originated from the merger transaction between British Airways and Iberia. The balance represents the difference between the fair value of the Group on the transaction date, and the fair value of Iberia and the book value of British Airways (including its reserves). 6 Capital reserves include a Redeemed capital reserve of \u20ac70 million (2021: \u20ac70 million) associated with the decrease in share capital relating to cancelled shares and a Share capital reduction reserve of \u20ac797 million (2021: \u20ac797 million) associated with a reduction in the nominal value of the Company\u2019s share capital (note 29). ",
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},
"fact-679": {
"value": "31 Other reserves and non-controlling interests For the year to December 31, 2022 Other reserves \u20ac million Unrealised gains and losses 1 Cost of hedging reserve 2 Currency translation 3 Equity portion of convertible bond 4 Merger reserve 5 Capital reserves 6 Total other reserves Non- controlling interest January 1, 2022 (94) 24 (65) 62 (2,467) 867 (1,673) 6 Other comprehensive income for the year Cash flow hedges reclassified and reported in net profit: Fuel and oil costs (1,115) \u2013 \u2013 \u2013 \u2013 \u2013 (1,115) \u2013 Currency differences (90) \u2013 \u2013 \u2013 \u2013 \u2013 (90) \u2013 Finance costs 10 \u2013 \u2013 \u2013 \u2013 \u2013 10 \u2013 Discontinuance of hedge accounting (22) \u2013 \u2013 \u2013 \u2013 \u2013 (22) \u2013 Ineffectiveness recognised in other non-operating costs (16) \u2013 \u2013 \u2013 \u2013 \u2013 (16) \u2013 Net change in fair value of cash flow hedges 1,472 \u2013 \u2013 \u2013 \u2013 \u2013 1,472 \u2013 Net change in fair value of other equity investments 2 \u2013 \u2013 \u2013 \u2013 \u2013 2 \u2013 Net change in fair value of cost of hedging \u2013 (115) \u2013 \u2013 \u2013 \u2013 (115) \u2013 Cost of hedging reclassified and reported in net profit \u2013 38 \u2013 \u2013 \u2013 \u2013 38 \u2013 Fair value movements on liabilities attributable to credit risk changes (6) \u2013 \u2013 \u2013 \u2013 \u2013 (6) \u2013 Currency translation differences \u2013 \u2013 (53) \u2013 \u2013 \u2013 (53) \u2013 Hedges reclassified and reported in property, plant and equipment (51) (14) \u2013 \u2013 \u2013 \u2013 (65) \u2013 Hedges reclassified and reported in sales in advance of carriage 35 1 \u2013 \u2013 \u2013 \u2013 36 \u2013 Hedges reclassified and reported in inventory (58) \u2013 \u2013 \u2013 \u2013 \u2013 (58) \u2013 Redemption of convertible bond \u2013 \u2013 \u2013 (62) \u2013 \u2013 (62) \u2013 December 31, 2022 67 (66) (118) \u2013 (2,467) 867 (1,717) 6 Other reserves \u20ac million Unrealised gains and losses 1 Cost of hedging reserve 2 Currency translation 3 Equity portion of convertible bond 4 Merger reserve 5 Redeemed capital reserve 6 Total other reserves Non- controlling interest January 1, 2021 (867) 38 (53) 62 (2,467) 867 (2,420) 6 Other comprehensive income for the year Cash flow hedges reclassified and reported in net loss: Passenger revenue 18 \u2013 \u2013 \u2013 \u2013 \u2013 18 \u2013 Fuel and oil costs (45) \u2013 \u2013 \u2013 \u2013 \u2013 (45) \u2013 Currency differences (15) \u2013 \u2013 \u2013 \u2013 \u2013 (15) \u2013 Finance costs 23 \u2013 \u2013 \u2013 \u2013 \u2013 23 \u2013 Discontinuance of hedge accounting (62) \u2013 \u2013 \u2013 \u2013 \u2013 (62) \u2013 Net change in fair value of cash flow hedges 848 \u2013 \u2013 \u2013 \u2013 \u2013 848 \u2013 Net change in fair value of cost of hedging \u2013 10 \u2013 \u2013 \u2013 \u2013 10 \u2013 Cost of hedging reclassified and reported in net profit \u2013 (12) \u2013 \u2013 \u2013 \u2013 (12) \u2013 Fair value movements on liabilities attributable to credit risk changes (15) \u2013 \u2013 \u2013 \u2013 \u2013 (15) Currency translation differences \u2013 \u2013 (12) \u2013 \u2013 \u2013 (12) \u2013 Hedges reclassified and reported in property, plant and equipment 21 (12) \u2013 \u2013 \u2013 \u2013 9 \u2013 December 31, 2021 (94) 24 (65) 62 (2,467) 867 (1,673) 6 1 The unrealised gains and losses reserve records fair value changes on equity investments and the portion of the amounts on hedging instruments in cash flow hedges that are determined to be effective hedges. The amounts at December 31, 2022 that relate to the fair value changes on equity instruments and to the cash flow hedge reserve were \u20ac11 million credit and \u20ac56 million credit, respectively. 2 The cost of hedging reserve records, amongst others, changes on the time value of options. 3 The currency translation reserve records exchange differences arising from the translation of the financial statements of non-euro functional currency subsidiaries and investments accounted for under the equity method into the Group\u2019s reporting currency of euros. The movement through this reserve is affected by the fluctuations in the pound sterling to euro foreign exchange translation rate. 4 At December 31, 2021 the equity portion of convertible bond reserve represented the equity portion of the \u20ac500 million fixed rate 0.625 per cent convertible bond that matured in 2022. During 2022 the Group redeemed the \u20ac500 million convertible bond with no conversion into ordinary shares. On redemption, an amount of \u20ac62 million was transferred to Retained earnings. 5 The merger reserve originated from the merger transaction between British Airways and Iberia. The balance represents the difference between the fair value of the Group on the transaction date, and the fair value of Iberia and the book value of British Airways (including its reserves). 6 Capital reserves include a Redeemed capital reserve of \u20ac70 million (2021: \u20ac70 million) associated with the decrease in share capital relating to cancelled shares and a Share capital reduction reserve of \u20ac797 million (2021: \u20ac797 million) associated with a reduction in the nominal value of the Company\u2019s share capital (note 29). ",
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},
"fact-663": {
"value": "31 Other reserves and non-controlling interests For the year to December 31, 2022 Other reserves \u20ac million Unrealised gains and losses 1 Cost of hedging reserve 2 Currency translation 3 Equity portion of convertible bond 4 Merger reserve 5 Capital reserves 6 Total other reserves Non- controlling interest January 1, 2022 (94) 24 (65) 62 (2,467) 867 (1,673) 6 Other comprehensive income for the year Cash flow hedges reclassified and reported in net profit: Fuel and oil costs (1,115) \u2013 \u2013 \u2013 \u2013 \u2013 (1,115) \u2013 Currency differences (90) \u2013 \u2013 \u2013 \u2013 \u2013 (90) \u2013 Finance costs 10 \u2013 \u2013 \u2013 \u2013 \u2013 10 \u2013 Discontinuance of hedge accounting (22) \u2013 \u2013 \u2013 \u2013 \u2013 (22) \u2013 Ineffectiveness recognised in other non-operating costs (16) \u2013 \u2013 \u2013 \u2013 \u2013 (16) \u2013 Net change in fair value of cash flow hedges 1,472 \u2013 \u2013 \u2013 \u2013 \u2013 1,472 \u2013 Net change in fair value of other equity investments 2 \u2013 \u2013 \u2013 \u2013 \u2013 2 \u2013 Net change in fair value of cost of hedging \u2013 (115) \u2013 \u2013 \u2013 \u2013 (115) \u2013 Cost of hedging reclassified and reported in net profit \u2013 38 \u2013 \u2013 \u2013 \u2013 38 \u2013 Fair value movements on liabilities attributable to credit risk changes (6) \u2013 \u2013 \u2013 \u2013 \u2013 (6) \u2013 Currency translation differences \u2013 \u2013 (53) \u2013 \u2013 \u2013 (53) \u2013 Hedges reclassified and reported in property, plant and equipment (51) (14) \u2013 \u2013 \u2013 \u2013 (65) \u2013 Hedges reclassified and reported in sales in advance of carriage 35 1 \u2013 \u2013 \u2013 \u2013 36 \u2013 Hedges reclassified and reported in inventory (58) \u2013 \u2013 \u2013 \u2013 \u2013 (58) \u2013 Redemption of convertible bond \u2013 \u2013 \u2013 (62) \u2013 \u2013 (62) \u2013 December 31, 2022 67 (66) (118) \u2013 (2,467) 867 (1,717) 6 Other reserves \u20ac million Unrealised gains and losses 1 Cost of hedging reserve 2 Currency translation 3 Equity portion of convertible bond 4 Merger reserve 5 Redeemed capital reserve 6 Total other reserves Non- controlling interest January 1, 2021 (867) 38 (53) 62 (2,467) 867 (2,420) 6 Other comprehensive income for the year Cash flow hedges reclassified and reported in net loss: Passenger revenue 18 \u2013 \u2013 \u2013 \u2013 \u2013 18 \u2013 Fuel and oil costs (45) \u2013 \u2013 \u2013 \u2013 \u2013 (45) \u2013 Currency differences (15) \u2013 \u2013 \u2013 \u2013 \u2013 (15) \u2013 Finance costs 23 \u2013 \u2013 \u2013 \u2013 \u2013 23 \u2013 Discontinuance of hedge accounting (62) \u2013 \u2013 \u2013 \u2013 \u2013 (62) \u2013 Net change in fair value of cash flow hedges 848 \u2013 \u2013 \u2013 \u2013 \u2013 848 \u2013 Net change in fair value of cost of hedging \u2013 10 \u2013 \u2013 \u2013 \u2013 10 \u2013 Cost of hedging reclassified and reported in net profit \u2013 (12) \u2013 \u2013 \u2013 \u2013 (12) \u2013 Fair value movements on liabilities attributable to credit risk changes (15) \u2013 \u2013 \u2013 \u2013 \u2013 (15) Currency translation differences \u2013 \u2013 (12) \u2013 \u2013 \u2013 (12) \u2013 Hedges reclassified and reported in property, plant and equipment 21 (12) \u2013 \u2013 \u2013 \u2013 9 \u2013 December 31, 2021 (94) 24 (65) 62 (2,467) 867 (1,673) 6 1 The unrealised gains and losses reserve records fair value changes on equity investments and the portion of the amounts on hedging instruments in cash flow hedges that are determined to be effective hedges. The amounts at December 31, 2022 that relate to the fair value changes on equity instruments and to the cash flow hedge reserve were \u20ac11 million credit and \u20ac56 million credit, respectively. 2 The cost of hedging reserve records, amongst others, changes on the time value of options. 3 The currency translation reserve records exchange differences arising from the translation of the financial statements of non-euro functional currency subsidiaries and investments accounted for under the equity method into the Group\u2019s reporting currency of euros. The movement through this reserve is affected by the fluctuations in the pound sterling to euro foreign exchange translation rate. 4 At December 31, 2021 the equity portion of convertible bond reserve represented the equity portion of the \u20ac500 million fixed rate 0.625 per cent convertible bond that matured in 2022. During 2022 the Group redeemed the \u20ac500 million convertible bond with no conversion into ordinary shares. On redemption, an amount of \u20ac62 million was transferred to Retained earnings. 5 The merger reserve originated from the merger transaction between British Airways and Iberia. The balance represents the difference between the fair value of the Group on the transaction date, and the fair value of Iberia and the book value of British Airways (including its reserves). 6 Capital reserves include a Redeemed capital reserve of \u20ac70 million (2021: \u20ac70 million) associated with the decrease in share capital relating to cancelled shares and a Share capital reduction reserve of \u20ac797 million (2021: \u20ac797 million) associated with a reduction in the nominal value of the Company\u2019s share capital (note 29). ",
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},
"fact-634": {
"value": "32 Employee benefit obligations The Group operates a variety of post-employment benefit arrangements, covering both defined contribution and defined benefit schemes. The Group also has a scheme for flight crew who meet certain conditions and therefore have the option of being placed on reserve and retaining their employment relationship until reaching the statutory retirement age, or taking early retirement (note 26). Defined contribution schemes The Group operates a number of defined contribution schemes for its employees. Costs recognised in respect of defined contribution pension plans in Spain, UK and Ireland for the year to December 31, 2022 were \u20ac251 million (2021: \u20ac200 million). Defined benefit schemes The principal funded defined benefit pension schemes within the Group are the Airways Pension Scheme (APS) and the New Airways Pension Scheme (NAPS), both of which are in the UK and are closed to new members. APS has been closed to new members since 1984, but remains open to future accrual. The benefits provided under APS are based on final average pensionable pay and, for the majority of members, are subject to inflationary increases in payment. NAPS has been closed to new members since 2003 and closed to future accrual since 2018. Following closure, members\u2019 deferred pensions are increased annually by inflation up to five per cent per annum (measured using the Government\u2019s annual Pension Increase (Review) Orders, which since 2011 have been based on CPI). APS and NAPS are governed by separate Trustee Boards. Although APS and NAPS have separate Trustee Boards, certain aspects of the business of the two schemes are common. APS and NAPS have developed certain joint working groups that are attended by the Trustee Board members of each scheme although each Trustee Board reaches its decisions independently. There are sub committees which are separately responsible for the governance, operation and investments of each scheme. British Airways Pension Trustees Limited holds the assets of both schemes on behalf of their respective Trustees. Triennially, the Trustees of APS and NAPS undertake actuarial valuations, which are subsequently agreed with British Airways to determine the cash contributions and any deficit payment plans through to the next valuation date, as well as ensuring that the schemes have sufficient funds available to meet future benefit payments to members. These actuarial valuations are prepared using the principles set out in UK Pension legislation. This differs from the IAS 19 \u2018Employee benefits\u2019 valuation, which is used for deriving the Income statement and Balance sheet positions and uses a best-estimate approach overall. The different purpose and principles lead to different assumptions being used, and therefore a different estimate for the liabilities and funding levels. During 2022, the triennial valuations, as at March 31, 2021, were finalised for APS and NAPS which resulted in a technical surplus of \u20ac343 million (\u00a3295 million) for APS and a technical deficit of \u20ac1,887 million (\u00a31,650 million) for NAPS. The actuarial valuations performed for APS and NAPS are different to the valuation performed as at December 31, 2022 under IAS 19 \u2018Employee Benefits\u2019 mainly due to timing differences of the measurement dates and to the specific scheme assumptions in the actuarial valuation performed as at March 31, 2021 compared with IAS 19 requirements used in the accounting valuation assumptions as at the reporting date. The triennial actuarial valuation of neither APS and NAPS is updated outside of the triennial valuations, making comparability between the scheme liabilities applying the principles set out in the UK Pension legislation and the requirements of IAS 19 not possible. The principal difference relates to the discount rate applied, which under the triennial actuarial valuation, aligns with a prudent estimate of the future investment returns on the assets of the respective schemes, whereas, under IAS 19, the rates are based on high quality corporate bond yields, regardless of how the assets are invested. The triennial valuation as at March 31, 2021 for NAPS supersedes the previous agreements reached in 2020 and 2021 between British Airways and the Trustee of NAPS relating to the deferral of deficit contributions. The deferred deficit contributions have been incorporated into the deficit payment plan agreed as part of the triennial valuation as at March 31, 2021. As part of the triennial valuation as at March 31, 2021 for NAPS, British Airways has agreed to provide certain property assets as security, which will remain in place until September 30, 2028. Other plans British Airways also operates post-retirement schemes in a number of jurisdictions outside of the UK. The principal scheme is the British Airways Plc Pension Plan (USA) based in the United States and referred to as the \u2018US Plan\u2019. The US Plan is considered to be a defined benefit scheme and is closed to new members and to future accrual. The majority of British Airways\u2019 other plans are fully funded, but there are also a number of unfunded plans, for which the Group meets the benefit payment obligations as they fall due. In addition, Aer Lingus operates certain defined benefit plans, both funded and unfunded. Risk associated with the defined benefit schemes The defined benefit schemes expose the Group to a range of risks, with the following being the most significant: \u2022 asset volatility risk - the scheme obligations are calculated using a discount rate set with reference to high quality corporate bond yields. If scheme assets underperform this yield, this will reduce the surplus / increase the deficit, depending on the scheme. Certain of the schemes hold a significant proportion of equities, which are expected to outperform corporate bonds in the long term while creating volatility and risk in the short term; \u2022 longevity risk \u2013 the majority of the scheme obligations are to provide benefits over the life of the scheme members. An increase in life expectancy will result in a corresponding increase in the defined benefit obligation; \u2022 interest rate risk - a decrease in interest rates will increase plan liabilities, although this will be partially offset by an increase in the value of certain of the scheme assets; \u2022 inflation risk \u2013 a significant proportion of the scheme obligations are linked to inflation, such that any increase in inflation will cause an increase in the obligations. While certain of the scheme assets are indexed to inflation, any expected increase in the scheme assets from inflation would be disproportionately lower than the increase in the scheme obligations; and \u2022 currency risk \u2013 a number of scheme assets are denominated in currencies other than the pound sterling. Weakening of those currencies, or strengthening of the pound sterling, in the long term, will have the effect of reducing the value of scheme assets. a Cash payments and funding arrangements Cash payments in respect to pension obligations comprise normal employer contributions by the Group and deficit contributions based on the agreed deficit payment plan with NAPS. Total payments for the year to December 31, 2022 net of service costs made by the Group were \u20ac20 million (2021: \u20ac38 million) being the employer contributions of \u20ac22 million (2021: \u20ac41 million) less the current service cost of \u20ac2 million (2021: \u20ac3 million) (note 32b,c). Future funding arrangements Pension contributions for APS and NAPS were determined by actuarial valuations made at March 31, 2021, using assumptions and methodologies agreed between the Group and Trustee of each scheme. In total, the Group expects to pay \u20ac1 million in employer contributions to APS and NAPS in 2023. The following graph provides the undiscounted benefit payments to be made by the Trustees of APS and NAPS over the remaining expected duration of the schemes: Projected benefit payments from the reporting date (\u20ac million, unaudited) The amounts and timing of these projected benefit payments are subject to the aforementioned risks to the schemes. Deficit contributions At the date of the actuarial valuation, the actuarial deficit of NAPS amounted to \u20ac1,887 million. In order to address the deficit in the scheme, the Group has also committed to deficit contribution payments through to June 30, 2023, amounting to approximately \u20ac58 million per year, increasing by \u20ac58 million each year up to June 30, 2026 and subsequently capped at \u20ac257 million per year through to May 31, 2032. The deficit contribution plan includes an over-funding protection mechanism, based on the triennial valuation methodology for measuring the deficit, whereby deficit contributions are suspended if the funding position reaches 100 per cent, with a mechanism for contributions to resume if the contribution level subsequently falls below 100 per cent, or until such point as the scheme funding level reaches 100 per cent. During the year ended and as at December 31, 2022, given the funding level of the scheme, the NAPS funding position exceeded 100 per cent and accordingly deficit contributions were suspended. At December 31, 2022, the valuation of the funding level incorporates significant forward-looking assumptions, such that the Group currently does not expect to make further deficit contributions. Given the long-term nature of the NAPS scheme, these assumptions are subject to uncertainty and there can be no guarantee that deficit contributions will not resume in the future or that additional deficit contributions will not need to be incorporated into future triennial actuarial valuations. At December 31, 2022, had the over-funding protection mechanism not been applied, then the asset ceiling adjustment (as detailed in note 32c) would have been \u20ac661 million higher. At December 31, 2022, the Group is committed to the following undiscounted deficit payments, which are deductible for tax purposes at the statutory rate of tax: Projected benefit payments from the reporting date (\u20ac million, unaudited) The amounts and timing of these projected benefit payments are subject to the aforementioned risks to the schemes. Deficit contributions At the date of the actuarial valuation, the actuarial deficit of NAPS amounted to \u20ac1,887 million. In order to address the deficit in the scheme, the Group has also committed to deficit contribution payments through to June 30, 2023, amounting to approximately \u20ac58 million per year, increasing by \u20ac58 million each year up to June 30, 2026 and subsequently capped at \u20ac257 million per year through to May 31, 2032. The deficit contribution plan includes an over-funding protection mechanism, based on the triennial valuation methodology for measuring the deficit, whereby deficit contributions are suspended if the funding position reaches 100 per cent, with a mechanism for contributions to resume if the contribution level subsequently falls below 100 per cent, or until such point as the scheme funding level reaches 100 per cent. During the year ended and as at December 31, 2022, given the funding level of the scheme, the NAPS funding position exceeded 100 per cent and accordingly deficit contributions were suspended. At December 31, 2022, the valuation of the funding level incorporates significant forward-looking assumptions, such that the Group currently does not expect to make further deficit contributions. Given the long-term nature of the NAPS scheme, these assumptions are subject to uncertainty and there can be no guarantee that deficit contributions will not resume in the future or that additional deficit contributions will not need to be incorporated into future triennial actuarial valuations. At December 31, 2022, had the over-funding protection mechanism not been applied, then the asset ceiling adjustment (as detailed in note 32c) would have been \u20ac661 million higher. At December 31, 2022, the Group is committed to the following undiscounted deficit payments, which are deductible for tax purposes at the statutory rate of tax: \u20ac million NAPS 1 Other schemes Within 12 months \u2013 49 1-2 years \u2013 44 2-5 years \u2013 44 Greater than 5 years \u2013 \u2013 Total expected deficit payments \u2013 137 1 Committed deficit contributions for NAPS are stated after the effect of the over-funding protection mechanism. Deficit payments in respect of local arrangements outside of the UK have been determined in accordance with local practice. Under the triennial valuation of NAPS as at March 31, 2021, in the period up to December 31, 2023, no dividend payment is permitted from British Airways to IAG. In the period from January 1 to December 31, 2024, any dividends paid by British Airways will be matched by contributions to NAPS of 50 per cent of the value of dividends paid. In the period from January 1 to September 30, 2025, any dividend payment from British Airways to IAG that exceeds 50 per cent of the pre-exceptional profit after tax in each financial year will require additional payments to be made to NAPS if the scheme is not at least 100 per cent funded. All dividend restrictions cease from October 1, 2025, onwards. British Airways must maintain a minimum cash level of \u20ac1,829 million (\u00a31,600 million) as at the date of the declaration of any dividends as well as immediately following the payment of any dividends to IAG and the associated matching contributions to NAPS. The amount of any deficit contributions and dividend matching contributions in a single financial year is limited to \u20ac343 million (\u00a3300 million). b Employee benefit scheme amounts recognised in the financial statements i Amounts recognised on the Balance sheet 2022 \u20ac million APS NAPS Other Total Scheme assets at fair value 1 6,283 17,029 356 23,668 Present value of scheme liabilities 1 (6,052) (13,692) (548) (20,292) Net pension asset/(liability) 231 3,337 (192) 3,376 Effect of the asset ceiling 2 (80) (1,168) \u2013 (1,248) Other employee benefit obligations \u2013 \u2013 (11) (11) December 31, 2022 151 2,169 (203) 2,117 Represented by: Employee benefit asset 2,334 Employee benefit obligation (217) Net employee benefit asset 3 2,117 2021 \u20ac million APS NAPS Other Total Scheme assets at fair value 1 8,869 25,055 446 34,370 Present value of scheme liabilities 1 (8,333) (22,583) (706) (31,622) Net pension asset/(liability) 536 2,472 (260) 2,748 Effect of the asset ceiling 2 (186) (1,061) \u2013 (1,247) Other employee benefit obligations \u2013 \u2013 (11) (11) December 31, 2021 350 1,411 (271) 1,490 Represented by: Employee benefit asset 1,775 Employee benefit obligation (285) Net employee benefit obligation 3 1,490 1 Includes Additional Voluntary Contributions (AVCs), which the Trustees hold as assets to secure additional benefits on a defined contribution basis for those members who elect to make such AVCs. At December 31, 2022, such assets were \u20ac320 million (2021: \u20ac391 million) with a corresponding amount recorded in the scheme liabilities. 2 APS and NAPS have an accounting surplus under IAS 19, which would be available to the Group as a refund upon wind up of the scheme. This refund is restricted due to withholding taxes that would be payable by the Trustee arising on both the net pension asset and the future contractual minimum funding requirements. 3 The net deferred tax asset recognised on the net employee benefit asset (2021: asset) was \u20ac54 million at December 31, 2022 (2021: \u20ac62 million). The defined benefit obligation includes \u20ac21 million (2021: \u20ac25 million) arising from unfunded plans. ii Amounts recognised in the Income statement Pension costs charged to operating result are: \u20ac million 2022 2021 Defined benefit plans: Current service cost 2 3 Administrative expenses 19 29 21 32 Defined contribution plans 251 200 Pension costs recorded as employee costs 272 232 \u20ac million 2022 2021 Interest income on scheme assets (633) (432) Interest expense on scheme liabilities 584 425 Interest expense on asset ceiling 23 9 Net financing (credit)/charge relating to pensions (26) 2 iii Amounts recognised in the Statement of other comprehensive income \u20ac million 2022 2021 Return on plan assets excluding interest income 9,360 (2,495) Remeasurement of plan liabilities from changes in financial assumptions 1 (10,476) 95 Remeasurement of plan liabilities from changes in demographic assumptions 1 (202) (49) Remeasurement of experience losses 627 427 Remeasurement of the APS and NAPS asset ceilings 14 419 Exchange movements 6 (14) Pension remeasurements charged to Other comprehensive income (671) (1,617) Deferred tax arising on pension remeasurements 9 217 Pension remeasurements charged to Other comprehensive income, net of tax (662) (1,400) 1 The prior year figures include a reclassification between remeasurements of plan liabilities from changes in financial assumptions to remeasurement of plan liabilities from changes in demographic assumptions to align with the current year presentation. There is no change in the total pension remeasurements charged to Other comprehensive income. c Fair value of scheme assets i Investment strategies For both APS and NAPS, the Trustee has ultimate responsibility for decision making on investments matters, including the asset-liability matching strategy. The latter is a form of investing designed to match the movement in pension plan assets with the movement in the projected benefit obligation over time. The Trustees\u2019 investment committee adopts an annual business plan which sets out investment objectives and work required to support achievement of these objectives. The committee also deals with the monitoring of performance and activities, including work on developing the strategic benchmark to improve the risk return profile of the scheme where possible, as well as having a trigger-based dynamic governance process to be able to take advantage of opportunities as they arise. The investment committee reviews the existing investment restrictions, performance benchmarks and targets, as well as continuing to develop the de- risking and liability hedging portfolio. Both schemes use derivative instruments for investment purposes and to manage exposures to financial risks, such as interest rate, foreign exchange, longevity and liquidity risks arising in the normal course of business. Exposure to interest rate risk is managed through the use of Inflation-Linked Swap contracts. Foreign exchange forward contracts are entered into to mitigate the risk of currency fluctuations. Longevity risk is managed through the use of buy-in insurance contracts, asset swaps and longevity swaps. Along with existing contracts with Rothesay Life (as detailed in note 32c(iii)), APS is 90 per cent protected against all longevity risk and fully protected in relation to all pensions that were already being paid as at March 31, 2018. It is also more than 90 per cent protected against interest rates and inflation (on a Retail Price Index basis). The strategic benchmark for asset allocations differentiates between \u2018return seeking assets\u2019 and \u2018liability matching assets\u2019 depending on the maturity of each scheme. At December 31, 2022, the benchmark for NAPS was 31 per cent (2021: 37 per cent) in return seeking assets and 69 per cent (2021: 63 per cent) in liability matching investments. Bandwidths are set around these strategic benchmarks that allow for tactical asset allocation decisions, providing parameters for the investment committee and their investment managers to work within. APS no longer has a \u2018strategic benchmark\u2019 as instead, APS now runs off its liquidation portfolio to a liability matching portfolio of bonds and cash. The actual asset allocation for APS at December 31, 2022 was 1 per cent (2021: 1 per cent) in return seeking assets and 99 per cent (2021: 99 per cent) in liability matching investments. NAPS uses Liability Driven Investments (LDIs) to effectively hedge volatility in the scheme liabilities. This is achieved through direct bond holdings as opposed to the use of derivatives and as such leverage is low. Accordingly, as at December 31, 2022, NAPS has not been required to raise additional cash or liquidate existing assets in order to fund derivative positions. ii Movement in scheme assets A reconciliation of the opening and closing balances of the fair value of scheme assets is set out below: \u20ac million 2022 2021 January 1 34,370 31,185 Interest income 633 432 Administrative expenses (13) (21) Return on plan assets excluding interest income (9,360) 2,495 Employer contributions 1 22 41 Employee contributions 6 13 Benefits paid (1,301) (1,930) Exchange movements (689) 2,155 December 31 23,668 34,370 1 Includes employer contributions to APS of \u20ac1 million (2021: \u20ac1 million) and to NAPS of \u20acnil (2021: \u20acnil) of which deficit-funding payments represented \u20acnil for APS (2021: \u20acnil) and \u20acnil for NAPS (2021: \u20acnil). iii Composition of scheme assets Scheme assets held by the Group at December 31 comprise: 2022 \u20ac million APS NAPS Other Total 2021 Return seeking investments Listed equities \u2013 UK 8 125 6 139 224 Listed equities \u2013 Rest of world 1 883 163 1,047 4,441 Private equities 38 1,518 10 1,566 1,643 Properties 2 2,124 16 2,142 2,481 Alternative investments 41 1,837 3 1,881 1,925 90 6,487 198 6,775 10,714 Liability matching investments Government issued fixed bonds 790 4,390 99 5,279 10,681 Government issued index-linked bonds 860 7,225 8 8,093 8,511 Asset and longevity swaps 1 1,114 \u2013 \u2013 1,114 1,716 Insurance contract 1 3,356 \u2013 36 3,392 4,662 6,120 11,615 143 17,878 25,570 Other Cash and cash equivalents 117 563 4 684 1,139 Derivative financial instruments (47) (1,650) 9 (1,688) (3,135) Other investments 3 14 2 19 82 73 (1,073) 15 (985) (1,914) Total scheme assets 6,283 17,029 356 23,668 34,370 1 The prior year scheme asset balances split between Asset and longevity swaps and Insurance contracts have been updated to reflect the current year presentation. There is no change in total scheme assets. The fair values of the Group\u2019s scheme assets, which are not derived from quoted prices on active markets, are determined depending on the nature of the inputs used in determining the fair values (see note 28b for further details) and using the following methods and assumptions: \u2022 private equities are valued at fair value based on the most recent transaction price or third-party net asset, revenue or earnings-based valuations that generally result in the use of significant unobservable inputs. The dates of these valuations typically precede the reporting date and have been adjusted for any cash movements between the date of the valuation and the reporting date. Typically, the valuation approach and inputs for these investments are not updated through to the reporting date unless there are indications of significant market movements. \u2022 properties are valued based on an analysis of recent market transactions supported by market knowledge derived from third-party professional valuers that generally result in the use of significant unobservable inputs. \u2022 alternative investments fair values, which predominantly include holdings in investment and infrastructure funds are determined based on the most recent available valuations applying the Net Asset Value methodology and issued by fund administrators or investment managers and adjusted for any cash movements having occurred from the date of the valuation to the reporting date. The dates of these valuations typically precede the reporting date and have been adjusted for any cash movements between the date of the valuation and the reporting date. Typically, the valuation approach and inputs for these investments are not updated through to the reporting date unless there are indications of significant market movements. \u2022 other investments predominantly includes: interest receivable on bonds; dividends from listed and private equities that have been declared but not received at the balance sheet date; receivables from the sale of assets for which the proceeds have not been collected at the balance sheet date; and payables for the purchase of assets which have not been settled at the balance sheet date. \u2022 asset and longevity swaps - APS has a contract with Rothesay Life, entered into in 2010 and extended in 2013, which covers 25 per cent (2021: 25 per cent) of the pensioner liabilities for an agreed list of members. Under the contract, to reduce the risk of long-term longevity risk, Rothesay Life makes benefit payments monthly in respect of the agreed list of members in return for the contractual return receivable on a portfolio of assets (made up of quoted government debt) held by the scheme and the contractual payments made by APS to Rothesay Life on the longevity swaps. The Group holds the portfolio of assets at their fair value, with the government debt held at their quoted market price and the swaps accounted for at their estimated discounted future cash flows. During 2011, APS entered into a longevity swap with Rothesay Life, which covers an additional 21 per cent (2021: 21 per cent) of the pensioner liabilities for the same agreed list of members as the 2010 contract. Under the longevity swap, to reduce the risk of long-term longevity risk, APS makes a fixed payment to Rothesay Life each month reflecting the prevailing mortality assumptions at the inception of the contract, and Rothesay Life make a monthly payment to APS reflecting the actual monthly benefit payments to members. The cash flows are settled net each month. If pensioners live longer than expected at inception of the longevity swap, Rothesay Life will make payments to the scheme to offset the additional cost of paying pensioners and if pensioners do not live as long as expected, then the scheme will make payments to Rothesay Life. The Group holds the longevity swap at fair value, determined at the estimated discounted future cash flows. \u2022 insurance contract - During 2018 the Trustee of APS secured a buy-in contract with Legal & General. The buy-in contract covers all members in receipt of pensions from APS at March 31, 2018, excluding dependent children, receiving a pension at that date and members in receipt of equivalent pension only benefits, who were alive on October 1, 2018. Benefits coming into payment for retirements after March 31, 2018 are not covered. The contract covers benefits payable from October 1, 2018 onwards. The policy covers approximately 60 per cent of all benefits APS expects to pay out in future. iv Effect of the asset ceiling In measuring the valuation of the net defined benefit asset for each scheme, the Group limits such measurement to the lower of the surplus in each scheme and the respective asset ceiling. The asset ceiling represents the present value of the economic benefits available in the form of a refund or a reduction in future contributions after they are paid into the plan. The Group has determined that the recoverability of such surpluses, including minimum funding requirements, will be subject to withholding taxes in the UK, payable by the Trustee, of 35 per cent. The future committed NAPS deficit contributions, as detailed in note 32a, are treated as minimum funding requirements under IAS 19 and are not recognised as part of the scheme assets or liabilities. The Group has determined that upon the wind up of the scheme, that if the scheme is in surplus, including the incorporation of the minimum funding requirements, then the surplus will be available as a refund or a reduction in future contributions after they are paid into the scheme. The recovery of such amounts are subject to UK withholding tax payable by the Trustee. In measuring the recoverability of the surplus for each scheme, the Group limits such measurement to the lower of the surplus in each scheme and the respective asset ceiling. The asset ceiling represents the present value of the economic benefits available upon wind up of the scheme, less the application of withholding taxes in the UK, payable by the Trustee, at 35 per cent. A reconciliation of the effect of the asset ceiling used in calculating the IAS 19 irrecoverable surplus in APS and NAPS is set out below: \u20ac million 2022 2021 January 1 1,247 761 Interest expense 23 9 Remeasurements 14 419 Exchange movements (36) 58 December 31 1,248 1,247 d Present value of scheme liabilities i Movement in scheme liabilities A reconciliation of the opening and closing balances of the present value of the defined benefit obligations is set out below: \u20ac million 2022 2021 January 1 31,622 30,556 Current service cost 2 3 Interest expense 584 425 Remeasurements - financial assumptions 1, 2 (10,476) 95 Remeasurements - demographic assumptions 2 (202) (49) Remeasurements of experience losses 627 427 Benefits paid (1,301) (1,930) Employee contributions 6 13 Exchange movements (570) 2,082 December 31 20,292 31,622 1 Included in the remeasurements from financial assumptions is an amount of \u20ac10,299 million (2021: reduction of \u20ac1,866 million) that reduces the scheme liabilities relating to changes in the discount rates and \u20ac177 million (2021: increase of \u20ac1,961 million) that reduces the scheme liabilities relating to changes in inflation rates. 2 The prior year figures include a reclassification between remeasurements of plan liabilities from changes in financial assumptions to remeasurement of plan liabilities from changes in demographic assumptions to align with the current year presentation. There is no change in total scheme liabilities. ii Scheme liability assumptions The principal assumptions used for the purposes of the IAS 19 valuations were as follows: 2022 2021 Per cent per annum APS NAPS Other schemes 4 APS NAPS Other schemes 4 Discount rate 1 4.85 4.80 0.8-7.2 1.80 1.90 0.3-6.5 Rate of increase in pensionable pay 2 3.40 \u2013 2.0-6.0 3.55 \u2013 2.0-6.0 Rate of increase of pensions in payment 3 3.40 2.80 0.3-3.0 3.55 2.85 2.0-3.0 RPI rate of inflation 3.40 3.20 2.2-3.1 3.55 3.30 1.8-2.5 CPI rate of inflation 2.80 2.80 2.0-2.6 2.95 2.85 1.8-2.5 1 Discount rate is determined by reference to the yield on high quality corporate bonds of currency and term consistent with the scheme liabilities. 2 Rate of increase in pensionable pay, which reflects inflationary increases, is assumed to be in line with increases in RPI. 3 It has been assumed that the rate of increase of pensions in payment, which reflects inflationary increases, will be in line with CPI for NAPS and RPI for APS as at December 31, 2022. 4 The rate of increase in healthcare costs for schemes based in the United States is based on medical trend rates of 6.25 per cent grading down to 5.00 per cent over five years (2021: 6.00 per cent to 5.00 per cent over five years). The current longevities underlying the values of the scheme liabilities were as follows: Mortality assumptions 2022 2021 Life expectancy at age 60 for a: \u2022 male currently aged 60 27.9 28.1 \u2022 male currently aged 40 29.1 29.9 \u2022 female currently aged 60 29.3 29.5 \u2022 female currently aged 40 31.5 31.9 For APS, the base mortality tables are based on the Agreed Valuation Basis (AVB) as agreed between British Airways and the trustees of APS. For NAPS, the base mortality tables are based on the most recent model published by the UK actuarial profession\u2019s Continuous Mortality Investigation (CMI), being their 2021 model. These standard mortality tables, for both APS and NAPS, incorporate adjustments specific to the demographics of scheme members, including a long-term improvement parameter of 1.00 per cent per annum (2021: 1.25 per cent). Allowance has been made with regard to the long-term uncertainty arising from the effects of COVID-19. For schemes in the United States, mortality rates were based on the MP-2021 mortality tables incorporating adjustments for the long-term impact COVID-19 is expected to have on mortality. At December 31, 2022, the weighted-average duration of the defined benefit obligation was 10 years for APS (2021: 12 years) and 15 years for NAPS (2021: 19 years). The weighted average duration of the defined benefit obligations was 3 to 19 years for other schemes (2021: 11 to 23 years). The weighted average duration represents a single figure for the average number of years over which the employee benefit liability discounted cash flows is extinguished and is highly dependent on movements in the aforementioned discount rates, such that with an increase in the discount rates experienced in 2022, the weighted-average duration for both schemes has reduced. iii Sensitivity analysis Reasonably possible changes at the reporting date to significant valuation assumptions, holding other assumptions constant, would have affected the present value of scheme liabilities by the amounts shown: Increase in scheme liabilities \u20ac million APS NAPS Other schemes Discount rate (decrease of 50 basis points) 1 286 983 34 Future pension growth (increase of 50 basis points) 1 252 949 5 Future mortality rate (one year increase in life expectancy) 286 354 24 1 Sensitivities smaller than those disclosed can be approximately interpolated from those sensitivities above. Although the analysis does not take into account the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-664": {
"value": "Defined contribution schemes
The Group operates a number of defined contribution schemes for its employees.
Costs recognised in respect of defined contribution pension plans in Spain, UK and Ireland for the year to December 31, 2022 were \u20ac251
million (2021: \u20ac200 million).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDefinedContributionPlansExplanatory",
"language": "en",
"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-665": {
"value": "Defined benefit schemes The principal funded defined benefit pension schemes within the Group are the Airways Pension Scheme (APS) and the New Airways Pension Scheme (NAPS), both of which are in the UK and are closed to new members. APS has been closed to new members since 1984, but remains open to future accrual. The benefits provided under APS are based on final average pensionable pay and, for the majority of members, are subject to inflationary increases in payment. NAPS has been closed to new members since 2003 and closed to future accrual since 2018. Following closure, members\u2019 deferred pensions are increased annually by inflation up to five per cent per annum (measured using the Government\u2019s annual Pension Increase (Review) Orders, which since 2011 have been based on CPI). APS and NAPS are governed by separate Trustee Boards. Although APS and NAPS have separate Trustee Boards, certain aspects of the business of the two schemes are common. APS and NAPS have developed certain joint working groups that are attended by the Trustee Board members of each scheme although each Trustee Board reaches its decisions independently. There are sub committees which are separately responsible for the governance, operation and investments of each scheme. British Airways Pension Trustees Limited holds the assets of both schemes on behalf of their respective Trustees. Triennially, the Trustees of APS and NAPS undertake actuarial valuations, which are subsequently agreed with British Airways to determine the cash contributions and any deficit payment plans through to the next valuation date, as well as ensuring that the schemes have sufficient funds available to meet future benefit payments to members. These actuarial valuations are prepared using the principles set out in UK Pension legislation. This differs from the IAS 19 \u2018Employee benefits\u2019 valuation, which is used for deriving the Income statement and Balance sheet positions and uses a best-estimate approach overall. The different purpose and principles lead to different assumptions being used, and therefore a different estimate for the liabilities and funding levels. During 2022, the triennial valuations, as at March 31, 2021, were finalised for APS and NAPS which resulted in a technical surplus of \u20ac343 million (\u00a3295 million) for APS and a technical deficit of \u20ac1,887 million (\u00a31,650 million) for NAPS. The actuarial valuations performed for APS and NAPS are different to the valuation performed as at December 31, 2022 under IAS 19 \u2018Employee Benefits\u2019 mainly due to timing differences of the measurement dates and to the specific scheme assumptions in the actuarial valuation performed as at March 31, 2021 compared with IAS 19 requirements used in the accounting valuation assumptions as at the reporting date. The triennial actuarial valuation of neither APS and NAPS is updated outside of the triennial valuations, making comparability between the scheme liabilities applying the principles set out in the UK Pension legislation and the requirements of IAS 19 not possible. The principal difference relates to the discount rate applied, which under the triennial actuarial valuation, aligns with a prudent estimate of the future investment returns on the assets of the respective schemes, whereas, under IAS 19, the rates are based on high quality corporate bond yields, regardless of how the assets are invested. The triennial valuation as at March 31, 2021 for NAPS supersedes the previous agreements reached in 2020 and 2021 between British Airways and the Trustee of NAPS relating to the deferral of deficit contributions. The deferred deficit contributions have been incorporated into the deficit payment plan agreed as part of the triennial valuation as at March 31, 2021. As part of the triennial valuation as at March 31, 2021 for NAPS, British Airways has agreed to provide certain property assets as security, which will remain in place until September 30, 2028. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDefinedBenefitPlansExplanatory",
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"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-666": {
"value": "i Investment strategies For both APS and NAPS, the Trustee has ultimate responsibility for decision making on investments matters, including the asset-liability matching strategy. The latter is a form of investing designed to match the movement in pension plan assets with the movement in the projected benefit obligation over time. The Trustees\u2019 investment committee adopts an annual business plan which sets out investment objectives and work required to support achievement of these objectives. The committee also deals with the monitoring of performance and activities, including work on developing the strategic benchmark to improve the risk return profile of the scheme where possible, as well as having a trigger-based dynamic governance process to be able to take advantage of opportunities as they arise. The investment committee reviews the existing investment restrictions, performance benchmarks and targets, as well as continuing to develop the de- risking and liability hedging portfolio. Both schemes use derivative instruments for investment purposes and to manage exposures to financial risks, such as interest rate, foreign exchange, longevity and liquidity risks arising in the normal course of business. Exposure to interest rate risk is managed through the use of Inflation-Linked Swap contracts. Foreign exchange forward contracts are entered into to mitigate the risk of currency fluctuations. Longevity risk is managed through the use of buy-in insurance contracts, asset swaps and longevity swaps. Along with existing contracts with Rothesay Life (as detailed in note 32c(iii)), APS is 90 per cent protected against all longevity risk and fully protected in relation to all pensions that were already being paid as at March 31, 2018. It is also more than 90 per cent protected against interest rates and inflation (on a Retail Price Index basis). The strategic benchmark for asset allocations differentiates between \u2018return seeking assets\u2019 and \u2018liability matching assets\u2019 depending on the maturity of each scheme. At December 31, 2022, the benchmark for NAPS was 31 per cent (2021: 37 per cent) in return seeking assets and 69 per cent (2021: 63 per cent) in liability matching investments. Bandwidths are set around these strategic benchmarks that allow for tactical asset allocation decisions, providing parameters for the investment committee and their investment managers to work within. APS no longer has a \u2018strategic benchmark\u2019 as instead, APS now runs off its liquidation portfolio to a liability matching portfolio of bonds and cash. The actual asset allocation for APS at December 31, 2022 was 1 per cent (2021: 1 per cent) in return seeking assets and 99 per cent (2021: 99 per cent) in liability matching investments. NAPS uses Liability Driven Investments (LDIs) to effectively hedge volatility in the scheme liabilities. This is achieved through direct bond holdings as opposed to the use of derivatives and as such leverage is low. Accordingly, as at December 31, 2022, NAPS has not been required to raise additional cash or liquidate existing assets in order to fund derivative positions. c Fair value of scheme assets i Investment strategies For both APS and NAPS, the Trustee has ultimate responsibility for decision making on investments matters, including the asset-liability matching strategy. The latter is a form of investing designed to match the movement in pension plan assets with the movement in the projected benefit obligation over time. The Trustees\u2019 investment committee adopts an annual business plan which sets out investment objectives and work required to support achievement of these objectives. The committee also deals with the monitoring of performance and activities, including work on developing the strategic benchmark to improve the risk return profile of the scheme where possible, as well as having a trigger-based dynamic governance process to be able to take advantage of opportunities as they arise. The investment committee reviews the existing investment restrictions, performance benchmarks and targets, as well as continuing to develop the de- risking and liability hedging portfolio. Both schemes use derivative instruments for investment purposes and to manage exposures to financial risks, such as interest rate, foreign exchange, longevity and liquidity risks arising in the normal course of business. Exposure to interest rate risk is managed through the use of Inflation-Linked Swap contracts. Foreign exchange forward contracts are entered into to mitigate the risk of currency fluctuations. Longevity risk is managed through the use of buy-in insurance contracts, asset swaps and longevity swaps. Along with existing contracts with Rothesay Life (as detailed in note 32c(iii)), APS is 90 per cent protected against all longevity risk and fully protected in relation to all pensions that were already being paid as at March 31, 2018. It is also more than 90 per cent protected against interest rates and inflation (on a Retail Price Index basis). The strategic benchmark for asset allocations differentiates between \u2018return seeking assets\u2019 and \u2018liability matching assets\u2019 depending on the maturity of each scheme. At December 31, 2022, the benchmark for NAPS was 31 per cent (2021: 37 per cent) in return seeking assets and 69 per cent (2021: 63 per cent) in liability matching investments. Bandwidths are set around these strategic benchmarks that allow for tactical asset allocation decisions, providing parameters for the investment committee and their investment managers to work within. APS no longer has a \u2018strategic benchmark\u2019 as instead, APS now runs off its liquidation portfolio to a liability matching portfolio of bonds and cash. The actual asset allocation for APS at December 31, 2022 was 1 per cent (2021: 1 per cent) in return seeking assets and 99 per cent (2021: 99 per cent) in liability matching investments. NAPS uses Liability Driven Investments (LDIs) to effectively hedge volatility in the scheme liabilities. This is achieved through direct bond holdings as opposed to the use of derivatives and as such leverage is low. Accordingly, as at December 31, 2022, NAPS has not been required to raise additional cash or liquidate existing assets in order to fund derivative positions. ii Movement in scheme assets A reconciliation of the opening and closing balances of the fair value of scheme assets is set out below: \u20ac million 2022 2021 January 1 34,370 31,185 Interest income 633 432 Administrative expenses (13) (21) Return on plan assets excluding interest income (9,360) 2,495 Employer contributions 1 22 41 Employee contributions 6 13 Benefits paid (1,301) (1,930) Exchange movements (689) 2,155 December 31 23,668 34,370 1 Includes employer contributions to APS of \u20ac1 million (2021: \u20ac1 million) and to NAPS of \u20acnil (2021: \u20acnil) of which deficit-funding payments represented \u20acnil for APS (2021: \u20acnil) and \u20acnil for NAPS (2021: \u20acnil). iii Composition of scheme assets Scheme assets held by the Group at December 31 comprise: 2022 \u20ac million APS NAPS Other Total 2021 Return seeking investments Listed equities \u2013 UK 8 125 6 139 224 Listed equities \u2013 Rest of world 1 883 163 1,047 4,441 Private equities 38 1,518 10 1,566 1,643 Properties 2 2,124 16 2,142 2,481 Alternative investments 41 1,837 3 1,881 1,925 90 6,487 198 6,775 10,714 Liability matching investments Government issued fixed bonds 790 4,390 99 5,279 10,681 Government issued index-linked bonds 860 7,225 8 8,093 8,511 Asset and longevity swaps 1 1,114 \u2013 \u2013 1,114 1,716 Insurance contract 1 3,356 \u2013 36 3,392 4,662 6,120 11,615 143 17,878 25,570 Other Cash and cash equivalents 117 563 4 684 1,139 Derivative financial instruments (47) (1,650) 9 (1,688) (3,135) Other investments 3 14 2 19 82 73 (1,073) 15 (985) (1,914) Total scheme assets 6,283 17,029 356 23,668 34,370 1 The prior year scheme asset balances split between Asset and longevity swaps and Insurance contracts have been updated to reflect the current year presentation. There is no change in total scheme assets. The fair values of the Group\u2019s scheme assets, which are not derived from quoted prices on active markets, are determined depending on the nature of the inputs used in determining the fair values (see note 28b for further details) and using the following methods and assumptions: \u2022 private equities are valued at fair value based on the most recent transaction price or third-party net asset, revenue or earnings-based valuations that generally result in the use of significant unobservable inputs. The dates of these valuations typically precede the reporting date and have been adjusted for any cash movements between the date of the valuation and the reporting date. Typically, the valuation approach and inputs for these investments are not updated through to the reporting date unless there are indications of significant market movements. \u2022 properties are valued based on an analysis of recent market transactions supported by market knowledge derived from third-party professional valuers that generally result in the use of significant unobservable inputs. \u2022 alternative investments fair values, which predominantly include holdings in investment and infrastructure funds are determined based on the most recent available valuations applying the Net Asset Value methodology and issued by fund administrators or investment managers and adjusted for any cash movements having occurred from the date of the valuation to the reporting date. The dates of these valuations typically precede the reporting date and have been adjusted for any cash movements between the date of the valuation and the reporting date. Typically, the valuation approach and inputs for these investments are not updated through to the reporting date unless there are indications of significant market movements. \u2022 other investments predominantly includes: interest receivable on bonds; dividends from listed and private equities that have been declared but not received at the balance sheet date; receivables from the sale of assets for which the proceeds have not been collected at the balance sheet date; and payables for the purchase of assets which have not been settled at the balance sheet date. \u2022 asset and longevity swaps - APS has a contract with Rothesay Life, entered into in 2010 and extended in 2013, which covers 25 per cent (2021: 25 per cent) of the pensioner liabilities for an agreed list of members. Under the contract, to reduce the risk of long-term longevity risk, Rothesay Life makes benefit payments monthly in respect of the agreed list of members in return for the contractual return receivable on a portfolio of assets (made up of quoted government debt) held by the scheme and the contractual payments made by APS to Rothesay Life on the longevity swaps. The Group holds the portfolio of assets at their fair value, with the government debt held at their quoted market price and the swaps accounted for at their estimated discounted future cash flows. During 2011, APS entered into a longevity swap with Rothesay Life, which covers an additional 21 per cent (2021: 21 per cent) of the pensioner liabilities for the same agreed list of members as the 2010 contract. Under the longevity swap, to reduce the risk of long-term longevity risk, APS makes a fixed payment to Rothesay Life each month reflecting the prevailing mortality assumptions at the inception of the contract, and Rothesay Life make a monthly payment to APS reflecting the actual monthly benefit payments to members. The cash flows are settled net each month. If pensioners live longer than expected at inception of the longevity swap, Rothesay Life will make payments to the scheme to offset the additional cost of paying pensioners and if pensioners do not live as long as expected, then the scheme will make payments to Rothesay Life. The Group holds the longevity swap at fair value, determined at the estimated discounted future cash flows. \u2022 insurance contract - During 2018 the Trustee of APS secured a buy-in contract with Legal & General. The buy-in contract covers all members in receipt of pensions from APS at March 31, 2018, excluding dependent children, receiving a pension at that date and members in receipt of equivalent pension only benefits, who were alive on October 1, 2018. Benefits coming into payment for retirements after March 31, 2018 are not covered. The contract covers benefits payable from October 1, 2018 onwards. The policy covers approximately 60 per cent of all benefits APS expects to pay out in future. ",
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},
"fact-680": {
"value": "33 Contingent liabilities There are a number of legal and regulatory proceedings against the Group in a number of jurisdictions which at December 31, 2022, where they could be reliably estimated, amounted to \u20ac11 million (December 31, 2021: \u20ac22 million). The Group does not consider it probable that there will be an outflow of economic resources with regard to these proceedings and accordingly no provisions have been recorded. Contingent liabilities associated with income taxes, deferred taxes and indirect taxes are presented in note 10. ",
"dimensions": {
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"language": "en",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-635": {
"value": "34 Government grants and assistance The Group has availed itself of government grants and assistance as follows: The Coronavirus Job Retention Scheme (CJRS) \u2013 recognised net within Employee costs The CJRS was implemented by the Government of the United Kingdom from March 1, 2020 to August 30, 2020, where those employees designated as being \u2018furloughed workers\u2019 were eligible to have 80 per cent of their wage costs paid up to a maximum of \u00a32,500 per month. From September 1, 2020 to September 30, 2020, the level of eligibility reduced to 70 per cent of wage costs and up to a maximum of \u00a32,197.50 per month. From October 1, 2020 to October 31, 2020, the level of eligibility reduced to 60 per cent of wage costs and up to a maximum of \u00a31,875 per month. Following the introduction of further lockdown restrictions in the United Kingdom in November 2020, the CJRS was extended from November 1, 2020 to November 30, 2020 and then further to March 31, 2021 and then further again to September 30, 2021 with the level of eligibility increased to 80 per cent of wage costs and a maximum of \u00a32,500 per month through to the end of June 2021. From July 1, 2021 the eligibility decreased down each month to 60 per cent of wage costs and a maximum of \u00a31,875 per month by September 30, 2021, at which time the CJRS ended. Such costs were paid by the Government to the Group in arrears. The Group was obliged to continue to pay the associated social security costs and employer pension contributions. The Temporary Wage Subsidy Scheme (TWSS) and the Employment Wage Subsidy Scheme (EWSS) \u2013 recognised net within Employee costs The TWSS was implemented by the government of Ireland from March 1, 2020 to August 30, 2020, where those employees designated as being furloughed workers were eligible to have 85 per cent of their wage costs paid up to a maximum of \u20ac410 per week. This scheme was replaced with the EWSS from September 1, 2020 and ran through to April, 2022. For those qualifying employees (earning less than \u20ac1,462 per week), the government reimbursed wage costs up to a maximum of \u20ac203 per week. Such costs were paid by the government to the Group in arrears. The total amount of the relief received under the CJRS, the TWSS and the EWSS by the Group during 2022 amounted to \u20ac11 million (2021: \u20ac286 million). Temporary Redundancy Plan (ERTE) \u2013 no recognition in the financial statements of the Group The ERTE was implemented by the government of Spain from March 1, 2020 and ran through to February 28, 2022. Under this plan, employment was temporarily suspended and those designated employees were paid directly by the government and there was no remittance made to the Group. The Group was obliged to continue to pay the associated social security costs. Had those designated employees not been temporarily suspended during 2022, the Group would have incurred further employee costs of \u20ac3 million (2021: \u20ac269 million). The Ireland Strategic Investment Fund (ISIF) \u2013 recognised within Long-term borrowings On December 23, 2020, Aer Lingus entered into a financing arrangement for \u20ac75 million. On March 27, 2021, Aer Lingus entered into a further financing arrangement to extend the total amount to \u20ac150 million. On March 4, 2022, Aer Lingus entered into a financing arrangement with ISIF, which subsequently extinguished the existing \u20ac150 million of facilities and replaced them with a \u20ac350 million facility that matures in March 2025. On December 13, 2022, Aer Lingus repaid \u20ac100 million of this financing arrangement with the amount repaid available to be redrawn through to March 2025. The facility is secured on specific landing rights. At December 31, 2022 \u20ac300 million of the facility remained undrawn. The UK Export Finance (UKEF) \u2013 recognised within Long-term borrowings On February 22, 2021, British Airways entered into a 5-year term loan Export Development Guarantee Facility of \u20ac2.3 billion (\u00a32.0 billion) underwritten by a syndicate of banks, with 80 per cent of the principal guaranteed by UKEF. The facility is unsecured. On November 1, 2021, British Airways entered into a further 5-year term loan Export Development Guarantee Facility of \u20ac1.1 billion (\u00a31.0 billion) underwritten by a syndicate of banks, with 80 per cent of the principal guaranteed by UKEF. The facility is unsecured. At December 31, 2022 the facility remained undrawn.",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"fact-636": {
"value": "35 Related party transactions The following transactions took place with related parties for the financial years to December 31: \u20ac million 2022 2021 Sales of goods and services Sales to associates 1 5 6 Sales to significant shareholders 2 141 16 Purchases of goods and services Purchases from associates 3 61 49 Purchases from significant shareholders 2 113 69 Receivables from related parties Amounts owed by associates 4 1 1 Amounts owed by significant shareholders 5 25 5 Payables to related parties Amounts owed to associates 6 \u2013 3 Amounts owed to significant shareholders 5 26 2 1 Sales to associates: Consisted primarily of sales for airline related services to Dunwoody Airline Services (Holding) Limited (Dunwoody) of \u20ac4 million (2021: \u20ac5 million) and \u20ac1 million (2021: \u20ac1 million) to Serpista, S.A. and Multiservicios Aeroportuarios. 2 Sales to and purchases from significant shareholders related to interline services with Qatar Airways. 3 Purchases from associates: Consisted primarily of \u20ac35 million of airport auxiliary services purchased from Multiservicios Aeroportuarios, S.A. (2021: \u20ac33 million), \u20ac14 million of handling services provided by Dunwoody (2021: \u20ac8 million) and \u20ac13 million of maintenance services received from Serpista, S.A. (2021: \u20ac8 million). 4 Amounts owed by associates: Consisted primarily of \u20ac1 million of services provided to Multiservicios Aeroportuarios, Serpista, Dunwoody and Empresa Hispano Cubana de Mantenimiento de Aeronaves, Ibeca, S.A. (2021: \u20ac1 million). 5 Amounts owed by and to significant shareholders related to Qatar Airways. 6 Amounts owed to associates: \u20acnil (2021: \u20ac3 million). During the year to December 31, 2022 British Airways met certain costs of administering its retirement benefit plans, including the provision of support services to the Trustees. Costs borne on behalf of the retirement benefit plans amounted to \u20ac2 million (2021: \u20ac6 million) in relation to the costs of the Pension Protection Fund levy. The Group has transactions with related parties that are conducted in the normal course of the airline business, which include the provision of airline and related services. All such transactions are carried out on an arm\u2019s length basis. During the course of 2022, the Group renewed its loyalty currency exchange agreement with Qatar Airways, where Avios could be exchanged for points within the Qatar Airways\u2019 loyalty programme, the Privilege Club. In addition, in renewing the agreement, IAG Loyalty licensed the Avios brand name for use within the Privilege Club. During the course of 2022, the Group provided a long-term shareholder loan of \u20ac12 million ($14 million) to LanzaJet, Inc., a company which specialises in the generation of Sustainable Aviation Fuels of which the Group has a 16.7 per cent equity interest, classified as an associate and presented within Investments accounted for using the equity method in the Balance sheet. For the year to December 31, 2022, the Group has not made any provision for expected credit loss arising relating to amounts owed by related parties (2021: \u20acnil). Significant shareholders In this instance, significant shareholders are those parties who have the power to participate in the financial and operating policy decisions of the Group, as a result of their shareholdings in the Group, but who do not have control over these policies. At December 31, 2022, the only significant shareholder of the Group was Qatar Airways. At December 31, 2022 the Group had cash deposit balances with shareholders holding a participation of between 3 to 5 per cent, of \u20acnil (2021: \u20acnil). Board of Directors and Management Committee remuneration Compensation received by the Group\u2019s Board of Directors and Management Committee, in 2022 and 2021 is as follows: Year to December 31 \u20ac million 2022 2021 Base salary, fees and benefits Board of Directors Short-term benefits 4 3 Share-based payments 1 \u2013 Management Committee Short-term benefits 15 11 Share-based payments 2 1 For the year to December 31, 2022 the Board of Directors includes remuneration for one Executive Director (December 31, 2021: one Executive Director). The Management Committee includes remuneration for 14 members (December 31, 2021: 14 members). The Company provides life insurance for the Executive Director and all members of the Management Committee. For the year to December 31, 2022 the Company's obligation was \u20ac38,000 (2021: \u20ac35,000). At December 31, 2022 the transfer value of accrued pensions covered under defined benefit pension obligation schemes, relating to the current members of the Management Committee totalled \u20ac5 million (2021: \u20ac9 million). No loan or credit transactions were outstanding with Directors or officers of the Group at December 31, 2022 (2021: \u20acnil).",
"dimensions": {
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"fact-709": {
"value": "The Group has transactions with related parties that are conducted in the normal course of the airline business, which include the provision
of airline and related services. All such transactions are carried out on an arm\u2019s length basis.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithRelatedPartiesExplanatory",
"language": "en",
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"fact-667": {
"value": "Board of Directors and Management Committee remuneration Compensation received by the Group\u2019s Board of Directors and Management Committee, in 2022 and 2021 is as follows: Year to December 31 \u20ac million 2022 2021 Base salary, fees and benefits Board of Directors Short-term benefits 4 3 Share-based payments 1 \u2013 Management Committee Short-term benefits 15 11 Share-based payments 2 1 For the year to December 31, 2022 the Board of Directors includes remuneration for one Executive Director (December 31, 2021: one Executive Director). The Management Committee includes remuneration for 14 members (December 31, 2021: 14 members). The Company provides life insurance for the Executive Director and all members of the Management Committee. For the year to December 31, 2022 the Company's obligation was \u20ac38,000 (2021: \u20ac35,000). At December 31, 2022 the transfer value of accrued pensions covered under defined benefit pension obligation schemes, relating to the current members of the Management Committee totalled \u20ac5 million (2021: \u20ac9 million). No loan or credit transactions were outstanding with Directors or officers of the Group at December 31, 2022 (2021: \u20acnil).",
"dimensions": {
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},
"fact-637": {
"value": "36 Post balance sheet events On February 23, 2023, the Group entered into an agreement to acquire the remaining eighty per cent of the share capital of Air Europa Holdings that it had not previously owned. On successful completion of the transaction, 54,064,575 ordinary shares of the Company (which represented \u20ac100 million at the date of the agreement) will be transferred to and \u20ac100 million in cash will be paid to Globalia, with a further \u20ac100 million paid on both the first and second anniversary of completion. In addition, the Group has agreed to pay a break-fee to Globalia of \u20ac50 million should: (i) the relevant approvals, detailed below, not be forthcoming within 24 months of entering into the agreement; or (ii) the Group terminates the agreement at any time prior to completion. The acquisition is conditional on Globalia receiving approval from the syndicated banks that provide the loan agreements that are partially guaranteed by the Instituto de Cr\u00e9dito Oficial (ICO) and Sociedad Estatal de Participaciones Industriales (SEPI) in Spain. The acquisition is also subject to approval by relevant competition authorities. Until the completion of these approvals, the acquisition does not meet the recognition criteria under IFRS 3 Business combinations, and no accounting has been made for the transaction in these consolidated financial statements. The execution of the agreement has not impacted the fair value of the 20 per cent shareholding in Air Europa Holdings as detailed in note 19. The fair value of the non-controlling equity interest in Air Europa Holdings will be remeasured to reflect the transaction price upon successful completion of the transaction.",
"dimensions": {
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"entity": "scheme:959800TZHQRUSH1ESL13",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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}
}