British Airways owner IAG has reported reduced losses at its Spanish carrier Iberia, helping it return to profit in 2013.
The airline’s chief executive Willie Walsh said last year’s figures were also boosted by reducing costs and the addition of BMI’s prized Heathrow landing slots.
IAG competed the takeover of BMI in 2012 and also bought the profitable Spanish budget carrier Vueling, which helped improve IAG’s trading.
Pre-tax profit reported by IAG today stood at €227 million excluding ‘exceptional items’, a significant improvement in the €774 million loss the previous year.
Revenue was up3.1% to €18.6bn, despite a near 12% slump in cargo revenue. Passenger revenue grew €16.2bn – almost 6%.
BA made an operating profit of €762m for the 12 months to December 31.
Iberia remained in the red but reduced its losses to €166m. Vueling made a €168m operating profit since being bought by IAG in April.
Walsh said: “In 2013, we strengthened the group by acquiring Vueling, embarking on Iberia’s transformation and enhancing British Airways’ revenue performance. This has led to a strong financial recovery and return to profitability.”