Iberia posts narrower first quarter loss

Spanish airline Iberia posted a narrower than expected first-quarter operating loss, as more stable passenger revenues and cost…

Spanish airline Iberia posted a narrower than expected first-quarter operating loss, as more stable passenger revenues and cost cuts were helped by a 21 per cent fall in fuel costs.

Iberia said its January-March loss before interest and taxes (EBIT) narrowed to €75.5 million from €147 million in the 2009 period.

First quarter revenues fell 4.4 per cent to €1.05 billion, in line with capacity cuts, while the carrier's net loss was more nearly halved to €52 million.

Analysts forecast a net loss of €57 milllion.

Iberia, which plans to finalise a merger with British Airways this year to better fight a tough industry downturn.

The world's airlines lost about $9.4 billion last year as customers curbed spending during the recession, and they stand to lose another $2.8 billion this year, according to the International Air Transport Association (IATA).

Reuters