Iberia Earns 30.4 Million Euros in Third Quarter

Iberia’s third-quarter results, posted today, showed net earnings of 30.4 million euros in the quarter, despite rising fuel costs and weaker demand. In the first nine months of 2008, net earnings reached 51.1 million euros, 77 percent below the figure for the same period of 2007, due to the additional 374.2 million euros that was spent on fuel.

Operating income of 4,120.9 million euros in the first three quarters was little changed from that of the same period of last year, as the 46.9 million euro decline in passenger revenues was nearly offset by the 42.4 million euro increase in other income items. Iberia’s aircraft maintenance division alone brought in an additional 30.2 million euros in the period.

Operating expenses came to 4,137 million euros for the first three quarters, representing an increase of 220.8 million (5.6 percent) over those posted a year ago. This was chiefly due to higher fuel costs, which were offset in part by the cost-cutting measures prescribed in the company’s 2006-08 strategic plan, and the depreciation of the U.S. dollar against the euro. When fuel costs are excluded, Iberia’s operating expenses show a 5 percent decline from the same period of last year.

In the first three quarters spending on fuel accounted for 29 percent of total operating expenditures by the Iberia group, and for more than 36 percent of its transport business expenses. In the 9-month period, fuel cost Iberia a total of 1,201.4 million euros, which was 374.2 million more than in same-2007. This rise was offset in part by lower unit consumption, thanks to greater fuel-efficiency by the aircraft fleet.