31-Aug-2009 1:33 PM

Iberia believes passenger revenues reached a low in 2Q2009

Iberia stated its passenger revenues may have hit a low in 2Q2009 and expects margins to improve over the rest of the year, due to its aggressive capacity and cost cuts (Reuters, 28-Aug-09). The airline has previously stated it is unlikely to post a profit in 2009 if the crisis continues, but expects a return to profitability in 2010. Iberia announced it would redouble its anti-crisis efforts measures: [more]

  • Capacity: Plans to reduce capacity by another 2 ppts in 2009, to 6%, instead of the 4.3% target previously set. To do so it will ground another three A320s and postpone delivery of a new A340-600;
  • Cost reduction measures: Will continue to reduce staff, hold payroll costs down, and cancel or postpone about half of its planned investments;
  • Management structure: Iberia has reorganised its management structure to increase revenues, reduce operational costs and rationalise general expenses. [more]