Iberia reduced its losses in first half
Friday, August 27th, 2010Spanish airline Iberia has reported an operating loss Friday in weaker than expected due to higher demand for passenger transport and air freight to offset the negative impact of the ash cloud of April.
Iberia, which plans to merge with British Airways by the end of the year, said he had lost 72 million euros in the first half, against a consensus at 88 million euros.
"Aside from the expected recovery in air traffic, which has really supported these positive results was the significant improvement in yields," commented Elena Fernandez, an analyst at Ahorro Corporacion Spanish broker.
Yields of Iberia, ie the revenue generated per passenger on each mile flown, grew 7.8% in the first half.
Iberia estimated 20 million losses generated by the interruption of traffic caused by the ash cloud of April.But analysts say the real impact is not necessarily so bad.
"They could also sell tickets more expensive during this period," said Elena Fernandez.
In the second quarter alone, Iberia posted a net profit, ending six consecutive quarters of losses.
British Airways, Air France and Lufthansa said they expect to return to equilibrium at the operational level in 2010.
Title Iberia, which took 35% since the beginning of the year in the hope of a successful merger with BA, was down 0.82%) 2.550 Euros while the Spanish stock market index lost 0 27%.
The turnover of the company grew by 2.8% to 2.23 billion euros in the first six months of the year, supported by a rebound in demand for business class and air cargo, while that net losses were reduced to 21 million euros, the company continues to apply stringent cost controls.
The prediction of analysts polled by Reuters gave a turnover of 2.196 billion euros and a net loss of 41 million.