IAG Reports Loss

Having originally predicted that it would break even this year, the International
Airlines Group (IAG), parent company of British Airways and Iberia, has announced a €390m (US$476m) loss for the first half of 2012 compared to a €39m (US$48m) pre-tax profit in the same period last year.
Iberia was the worst hit and IAG says it will finalise a restructuring plan for the Spanish flag carrier: “by the end of September.”
The group’s revenue rose 10% to €8.5bn (US$10.4bn) compared with €7.8bn (US$9bn) in the same period last year.
Passenger numbers and average yield increased, but not be enough to compensate for the
25% rise in fuel charges.  Costs incurred by restructuring the business were also significant.
Nevertheless, British Airways recorded an operating profit of €13m (US$15.9m).
IAG’s CEO, WillieWalsh, commented that “Iberia’s problems are deep and structural and the economic environment reinforces the need for permanent structural change.  We are currently working on a restructuring plan for Iberia which we anticipate will be finalised by the end of September.  Inevitably, we will not be able to avoid job losses as part of this process.”