Weakness at Iberia wipes out progress at BA
Weakness at Iberia is continuing to wipe out British Airways’ strong performance on transatlantic routes. International Airlines Group has posted a €278 million operating loss for the first quarter. That’s bigger than the €249 million loss reported a year ago.
Iberia is “bleeding cash”, in the news agency Reuters words, as it fights competition from low-cost airlines and high-speed trains, high operating costs, hostile unions and Spain’s economic crisis.
Willie Walsh, the group’s chief executive, says there is “underlying revenue strength in strategic markets” but there is “more work to be done” to restructure Iberia.
[pictured: Iberia aircraft at Madrid Terminal 4; photo courtesy oneworld]