British Airways’ owner IAG plans to raise capacity from 22% of its pre-pandemic level to 45% this summer after posting a half-year loss of €2bn (£1.7bn).

Although shocking, the loss was only half that made in the same period last year when flights were grounded worldwide, but the airline group is continuing to burn through €190m a week.

Spanish carriers Iberia and Vueling have out-performed British Airways so far this year due to fewer travel restrictions in mainland Europe than in the UK.

However, BA is expected to benefit from the UK’s move to exempt fully vaccinated EU and US citizens from quarantine when they arrive from amber list countries from Monday.

IAG Chief Executive Luis Gallego welcome the loosening of travel restrictions in the UK, saying it was ‘an important first step in reopening transatlantic travel’.