Iberia set to report record operating loss ahead of British Airways merger

Iberia is expected to post a record operating loss in FY2009 of EUR335 million, according to analysts' forecasts (Reuters, 20-Feb-2010). The loss is expected to reflect declines in premium travel and yields, and overall extreme revenue weakness in the year. Iberia and British Airways are expected to finalise their merger agreement in 1Q2010, although British Airways' GBP3.7 billion pension deficit is still seen as a stumbling block to the proposed agreement.