Iberia dents IAG 2012 results
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International Airlines Group (IAG) has posted a loss in its full-year results, blaming Iberia and fuel costs for its downfall.
The group, which also owns British Airways, lost GBP863m in 2012 compared to profits of GBP453m in 2011. While BA saw an operating profit of GBP300m, Iberia saw a GBP303m loss and its fuel bill increased 20% to GBP5.3 billion.
Strikes have plagued the Spanish carrier as it continues with its turnaround plans, while it has also faced competition from low-cost carriers and the weak Spanish economic climate. In contrast yesterday rival Vueling, 45% owned by IAG, tripled its profits in 2012 to GBP24.3m.
Meanwhile British Airways saw capacity and traffic increase in all sectors, helped along by the network gained from its bmi takeover.
“British Airways, which is already seeing the benefit of permanent structural change, produced a solid financial performance in 2012, benefitting from a strong London market,” said Willie Walsh, chief executive at IAG. “The integration of bmi into British Airways was handled very effectively and, crucially, the airline remained focused on its overall business performance during this period.”
Iberia’s turnaround plans, costs and losses will determine this year’s results but IAG said it expects a better result than its profits registered in 2011.
