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IAG hails 'progress' in Iberia recovery | |
(about 4 hours later) | |
International Airlines Group (IAG) has said it is making progress in its efforts to revive its loss-making Spanish carrier Iberia. | |
Iberia's operating losses in the April-to-June quarter narrowed to 35m euros ($46m; £30m) from 93m a year earlier. | |
This helped IAG to report second quarter operating profits of 245m euros for the period, compared with a loss of 4m euros last year. | |
IAG has been trying to restructure Iberia, including cuts to jobs and pay. | |
However, the one-off costs associated with these measures contributed to IAG - which also owns British Airways and Spanish budget airline Vueling - reporting a pre-tax loss of 506m euros for the first six months of the year. | |
Shares up | |
IAG chief executive Willie Walsh told BBC Radio 4's Today programme the restructuring programme at Iberia was "making good progress". | |
The airline group said nearly 1,700 workers had left Iberia so far, although it plans to have shed more than 3,000 staff from the carrier by 2014. | |
Of the staff remaining, flight and cabin crew are having their pay cut by 18%, and other employees are seeing an 11% wage cut. | |
Mr Walsh also noted an improved profit performance at British Airways, where second quarter operating profits increased to 247m euros from 94m a year earlier. | |
IAG's results were welcomed by investors, with the firm's shares the biggest riser on the FTSE 100 - up 3.7% to 308p. | |
IAG's result's came on the same day that German airline Lufthansa reported a net loss of 204m euros for the first six months of the year, compared with a profit of 50m euros a year earlier. | |
Lufthansa is also in the process of trying to trim costs and is aiming to cut 3,500 jobs. | |
Chief financial officer Simone Menne said the restructuring of the airline was "gaining speed". |