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Spanish airline Iberia reports 4th quarter profit of euro104.6 million

Spanish airline Iberia reports 4th quarter profit of euro104.6 million

Iberia posted fourth-quarter net profit of euro104.6 million (US$155.6 million) thanks to cost controls and more efficient fuel consumption, the Spanish airline said Wednesday.
Spain's No. 1 airline by sales had a net loss of euro9.4 million (US$14 million) in the same period a year earlier.
Operating costs were unchanged during the fourth quarter of 2007 at euro1.33 billion (US$1.98 billion), as Iberia's fleet renewal improved fuel efficiency. Fuel-related expenses were also flat during the same comparative period at euro317.9 million (US$472.8 million).
Iberia has lowered operational costs, focusing on long-haul flights and domestic routes that feed passengers for its trans-Atlantic flights. The restructuring of its network model, centered on its new hub in Madrid, took place after its profitability came under pressure from low-fare airlines easyJet and Ryanair. Both companies boosted operations in Spain and are now offering domestic flights.
Iberia has also enhanced business-class services to widen profit margins.
Fourth-quarter revenue rose 2.3 percent to euro1.4 billion (US$2.1 billion).
Late last year, Iberia's leading shareholder, Spanish savings bank Caja Madrid, raised its stake in the carrier to 23 percent and disrupted an approach from code-share partner British Airways and U.S. private equity firm TPG. They had presented an indicative offer that valued Iberia at euro3.4 billion (US$5.1 billion), or euro3.60 (US$5.35) per share.
Iberia's shares have been punished since then, losing 21 percent of their value this year.
They were up 0.4 percent early Tuesday at euro2.38 (US$3.54).
With more than euro2 billion (US$2.97 billion) in cash and little debt, Iberia is now seeking to become a predator. It recently filed a bid for Spanair, the loss-making local unit of Scandinavian carrier SAS, as part of an effort to consolidate its grip on short-haul flights feeding its new terminal at Barajas airport.
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On the Net:
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Updated : 2021-04-16 07:42 GMT+08:00