IAG says restructuring at Iberia taking hold
Aug. 02, 2013
LONDON (AP) — International Airlines Group, the parent company of British Airways and Iberia, has reported a second-quarter net income of 127 million euros ($168 million) as restructuring at the Spanish airline begins to take hold.
The profit, versus a loss of 78 million euros last year, came after Iberia cut 1,700 jobs and cut the salaries by 18 percent for pilots and cabin crew and 11 percent for other employees. Revenue across the group rose 3.4 percent.
Chief Executive Willy Walsh said Friday the first step in the restructuring is already bearing fruit, with Iberia's losses down from 93 million euros last year to 35 million euros — reversing a negative trend of the last 11 quarters.
Meanwhile, BA's performance is improving and trans-Atlantic traffic remains strong, the company said.