The CEO of IAG, the holding company resulting from the merger of Iberia and British Airways, Willie Walsh, has announced that the restructuring plan for the Spanish airline will be finalised in late September and added that they will not be able to avoid job losses.
Walsh stated that the problems with Iberia are deep and structural and a permanent new structure is necessary if it is to be competitive.
In the first half of this year, IAG posted losses of €231 million, compared to a profit of €98 million during the same period last year. British Airways had an operating profit of €13 million in the first half of the year, Iberia made a loss of €263 million.
IAG’s net debt stood at €1,308 million, up by €160 million. Walsh said it is “possible” that the restructuring measures will reduce the size of Iberia in the short term, along with the remodeling of the network in order to achieve higher revenues per unit and a reassessment of the business .
As far as the new Iberia Express is concerned, a bone of contention with the unions and the cause of numerous strikes, the CEO noted that the airline was operating with an effective cost base and had managed to turn a profit in only its third month of activity.