Business

Iberia and fuel costs hit profits from BA-owner IAG

  • 28 February 2013
  • From the section Business

Restructuring charges at Iberia and fuel costs have hit results at International Airlines Group (IAG), which owns both the Spanish flag-carrier and British Airways.

It reported a net loss for 2012 of 943m euros ($1.24bn; £816m), compared with a 562m euros profit in 2011.

IAG's fuel bill rose 20.4% to 6.1bn euros, while Iberia announced recently that it was cutting 3,800 jobs.

The airline has been hit by Spain's weak economy.

Chief executive Willie Walsh said the results showed Iberia "must adapt to survive" but there has still been no agreement with Spanish unions.

IAG was formed in 2011 by the merger of Iberia and BA.

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