The Diplomat
The airline holding company IAG, of which Iberia is part, contributed more than 21.5 billion euros to Spain’s Gross Domestic Product (GDP) in 2019 and supported the generation of more than 371,000 jobs in Spain, equivalent to 1.7% of GDP and 2% of full-time employment, according to a report by PwC.
The group’s CEO, Luis Gallego, said on Monday at the presentation of the report that IAG is “committed to Spain and contributes significantly to the economy while supporting hundreds of thousands of jobs”.
“Aviation is an engine of the economy that drives job creation and business development as it grows, especially in the field of tourism,” he added.
To carry out the study, the socio-economic impact calculation includes both the activity and investment of IAG (corporate impact), as well as the direct, indirect and induced spending of tourists transported to and in Spain (tractor effect).
The report has taken data for 2019, the last before the pandemic, and includes the activities of Iberia (including Iberia Express and Level), Vueling, British Airways, Aer Lingus and the cargo business, IAG Cargo, in Spain.
IAG’s corporate impact from its activity in Spain contributed EUR 6.5 billion to GDP. This means that for every euro of IAG’s Ebitda, 4.72 euros were generated in the Spanish economy. The direct impact was the most pronounced (46%), followed by indirect (28%) and induced (27%).
In the case of IAG’s corporate impact on employment, the group’s activity contributed to the generation of 71,037 full-time equivalent (FTE) jobs in the Spanish economy. This implies that for every euro of IAG’s Ebitda, another 51 FTE jobs are maintained in the Spanish economy.
The tractor effect, which analyses the expenditure of passengers using IAG flights and the wider economic impact of this expenditure on the entire Spanish economy, was 15 billion euros and supported 300,000 jobs. The study shows that for every passenger flying with IAG, €636 in gross value added is generated. While for every 1,000 passengers flying to Spain with IAG, 14.7 jobs are generated.
