IAG has spent €700 million on restructuring Iberia
International Airlines Group says the positive results of its restructuring of Iberia are starting to be seen, now that the group has swung to a quarterly profit.
IAG has so far spent around €700 million on restructuring Iberia. This helped to cut losses in the second quarter, for the first time in almost three years.
After its merger with British Airways in 2011, the Spanish airline became unprofitable in all markets, including long haul. But now, “Iberia has started to turn the corner,” as IAG’s chief executive Willie Walsh put it. “It is starting to see the benefits of cuts to costs and capacity, but there’s still a long way to go.”
Cost cuts mean mass job cuts, and IAG has slashed 1,700 jobs at Iberia and plans to take that figure to more than 3,000 by 2014.
[photo courtesy oneworld]