IAG to cut jobs at Iberia
August 3rd, 2012 by elisa

IAG is to focus on “stringent cost control” across its airline group as it stands to make a “small loss” this year due to problems with the Spanish airline, Iberia.

Job losses are almost inevitable as part of the new measures to restructure the airline, details of which, IAG hopes to finalise by the end of September.

Chief executive Willie Walsh said: “A number of factors have improved over the past three months.

“Underlying British Airways trading conditions remain firm and BMI integration is on track, but any benefit from an easing of fuel prices has been more than offset by the deterioration in Spanish economic conditions.

“We were previously targeting a break-even operating result this year, after the impact of restructuring costs and the short term earnings drag from the BMI acquisition.

“However, in the light of the Spanish macro headwind, we now expect to make a small operating loss in 2012.”

IAG purchased loss-making BMI earlier in the year, which meant it made a total operating loss of €4 million in the quarter to June 30 2012, including €50 million of BMI losses before exceptional items.

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