Airlines Group, parent of British Airways and Iberia, for the September quarter
posted an operating profit of €270 million before
exceptional items and an overall profit after tax of €202 million, down from €267
million a year earlier. "The group performance is coming back to the levels seen in
2011," according to chief executive Willie Walsh. "However, there
remains a strong difference between the performances of British Airways and
Iberia, for example, during the first nine months of 2012
generated an operating loss of €262 million, compared with BA's operating
profit of €286 million. As a result, IAG on Friday laid out a "comprehensive plan to
save Iberia after record losses."
plan includes "permanent structural change across all areas of the
business." Iberia would see a 15 percent capacity reduction in 2013
"to focus on profitable routes," a smaller fleet, 4,500 job cuts and
"new commercial initiatives to boost unit revenues including increased
would revise its network to ensure "there is effective feed for profitable
long-haul flights." Short- and medium-haul flights, meanwhile, "will
be transformed to compete effectively with low-cost carriers who have
successfully established themselves in Iberia's home market."
set a deadline of Jan. 31, 2013, to reach new deals with worker unions.
"If we do not reach consensus we will have to take more radical action
which will lead to greater reductions in capacity and jobs," according to
Iberia chief executive Rafael Sánchez-Lozano. "Iberia is in fight for
survival. It is unprofitable in all its markets."
added that Iberia's "systemic" problems pre-date the Spanish and
European economic crises, and that the carrier currently is "burning €1.7
million every day. Time is not on our side."