International Consolidated Airlines Group, otherwise known as IAG, said Iberia continued to have a negative impact on its bottom line in the third quarter as it revealed details of a 'transformation plan' to get its loss-making Spanish airline back on track.
Total revenue rose 12.6% year-on-year in the third quarter (three months to September 30th), from €4.490bn to €5.056bn, as passenger revenue increased strongly, up 14.1%.
However, profit before tax from continuing operating declined from €316m to €221m. This means that for the first nine months of the year, the company registered a loss before tax of €169m, compared with a profit of €355m in the same period of 2011.
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Chief Executive Willie Walsh said: "The group performance is coming back to the levels seen in 2011 and this is particularly true if you strip out the bmi losses of €31 million in the quarter. However, there remains a strong difference between the performances of British Airways and Iberia."
"Iberia continues to cause concern and we are announcing today a restructuring plan to introduce permanent structural change across the airline. Iberia is in a fight for survival and we will transform it to reduce its cost base so it can grow profitably in the future."
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