Iberia's shares slumped 5.5% yesterday, as the carrier announced plans to more than double its planned capacity cutbacks this year to 4%. Iberia Chairman, Fernando Conte, stated, "with the situation that we are seeing, we believe it is appropriate to rapidly cut supply".
The carrier last Friday reported a 46% fall in EBITDAR to EUR500 million and a EUR19 million net loss in the fourth quarter of 2008, as demand eased.
Iberia is expecting March could be a "decisive month" in its merger talks with British Airways. Shares in British Airways fell 3.2% yesterday, outperforming the 5.3% plunge in the FTSE 100 index.
Another Spanish airline, Vueling, suffered a 10.4% drop in its share price yesterday, despite the commencement of a ticket cross-selling deal with merger partner, Clickair. Iberia will hold a 45% stake in the "new Vueling", once the deal is consummated later in the year.
European selected airlines daily share price movements (% change): 02-Mar-09
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.