Iberia SWOT: LatAm a key strength, Nth America leading growth

Iberia's capacity growth in 2018 is being led by its long haul network, in particular by its North American operations. The 25-Apr-2018 launch of Madrid-San Francisco brings its North America network its seventh route (excluding routes operated by Level). Nevertheless, this remains very much the second string to Iberia's long haul bow, after Latin America, where it has 17 routes.

Competition from long haul low cost operator Norwegian to North Atlantic destinations from Barcelona prompted IAG to establish Level as the group's own long haul low cost operator. IAG's interest in considering an acquisition of Norwegian is mainly motivated by the North Atlantic, but it could also help it to avoid any future competitive threat to Iberia from Norwegian on the South Atlantic.

Iberia has improved its operating and financial results significantly since its loss-making years of 2008-2013, but it remains focused on further improvement. This report considers Iberia's strengths, weaknesses, opportunities and threats.