Strikes and fuel costs hit IAG
IAG has blamed high fuel prices and the Iberia pilots strike for a sharp rise in first quarter losses.
The group, formed by the merger of Iberia and British Airways, reported operating losses of €249 million before exceptional items, more than double the €102 million last year.
This was despite a 7.8% rise in revenue to €3.9 billion.
Chief executive Willie Walsh said the group was hit by a 24.9% rise in fuel costs, while the Iberia pilots’ strike cost €25 million.
Iberia’s overall operating loss for the quarter was €170 million, compared to €100 million in 2011, while BA’s operating loss was £62 million, compared to £5 million last year.
"Iberia’s performance reflects the weakness of the Spanish domestic market and industrial action by pilots opposed to actions by Iberia’s management to improve the airline’s efficiencies," said Walsh.
"For British Airways, although the London market and demand for transatlantic travel remains strong, its performance has been affected by rising fuel costs."
He said the Group’s performance continues to be undermined by APD in the UK, while the Spanish government plans to increase departure taxes from Spain by up to €10 per passenger.
* Following the acquisition of bmi, BA plans to launch flights from Heathrow to Leeds-Bradford, Rotterdam and Zagreb and increase frequencies to existing key destinations.
by Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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