IAG shares take a hit as Iberia continues to struggle
Shares in British Airways and Iberia owner International Airlines Group (IAG) are falling despite the company swinging back into the black, with profit before tax reaching €227m (£186m) for the year ended 31 December 2013. In 2012, the company suffered a loss before tax of €774m.
However, Iberia has continued to struggle while the Spanish economy remains a drag on earnings.
Shares in the company are down two per cent.
Willie Walsh, IAG chief executive, commented:
Iberia has made huge progress on cost control as its restructuring takes shape and great credit should be given to all those involved.
It has reduced its losses in the year, reporting an operating loss of €166m.
The recent pay and productivity agreements between Iberia and its pilot and cabin crew unions are key to reducing the airline's costs further and providing the foundation for profitable growth
The company also saw revenue rise three per cent while British Airways benefitted from the first full year of additional Heathrow slots. IAG said it's low cost Spanish based Vueling carrier was on course to meet it's 2015 targets.
(Google)