Iberia suffers operating loss but reports net profit for second-quarter
06 Aug 2008
Inspite of an operating loss, Spanish flag carrier, Iberia, has reported a second-quarter net profit of €21.2 million ($33 million). This is down 66.2% from the €62.6 million reported in the year-ago quarter.
Iberia's operating result was a €4 million loss, reversed from a €56.9 million profit in the Q2 of 2007.
It said operating revenue was up just 0.9%, year-over-year, to €1.37 billion, while costs were up 5.6% to €1.37 billion. While passenger revenue dropped 2%, fuel costs climbed 48.8% to €404.6 million.
Load factor fell 1.1 points to 79.7% even as yield dropped 2.5% to 7.32 euro cents. Iberia cut domestic capacity in the quarter by 17.3%, year-over-year, and boosted its medium- and long-haul flying.
The carrier, which also announced its intention to merge with British Airways last week, now operates a fleet of 128 aircraft, down from 142 aircraft for the same period a year ago. It owns just 22 aircraft and has the rest on lease.
During the first six months of 2008 it phased out 13 MD-80s and two B757s, adding two A340-300s, three A319s and two A320s.
Net earnings of €20.7 million in the first half of the year were down 72.3%, from earnings of €74.8 million for the same period last year.
It suffered an operating loss of €32.3 million for the first half as compared to a €70 million profit in the same period, a year ago.
