Combined BA/Iberia group would rank third by revenue

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Potential merger partners British Airways (BA) and Iberia will form the third largest carrier group in terms of revenue, after Air France-KLM and Lufthansa.

BA and Iberia rank as the eighth and 21st largest carriers in terms of revenues, according to the latest airline rankings performed by sister publication Airline Business.

Yesterday the two carriers revealed that they have entered merger discussions and, if BA’s $17.6 billion turnover is combined with Iberia’s $7.6 billion, the airlines’ joint revenues will total $25.2 billion.

This places them as the third largest carrier group by revenue, pushing FedEx down to fourth position and Oneworld alliance partner American Airlines’ parent AMR to fifth place.

A BA spokeswoman was not immediately able to comment on the future reporting currency for the new airline group or where its holding company will be based.

BA operates around 760 daily flights to more than 140 destinations, using its fleet of 245 aircraft. Its aircraft types include Airbus A319s, A320s, A321s, Boeing 737-300s, -400s, -500s, 747-400s, 757s, 767s and 777s. BA also has A380s and 787s on order.

Iberia’s network comprises 109 destinations, which it serves with more than 1,000 daily flights. Its 198-strong fleet includes A319s, A320s, A321s, A340s, Boeing MD-87s and MD-88s.

The Spanish Oneworld carrier claims to be leading airline between Europe and Latin America in terms of flights and destinations, while BA is stronger in the Middle East and Asia.

 

 

NETWORK COMPARISON

BA Iberia)

Home market (UK & Ireland/Spain)

8

35

Europe

68

42

Africa

15

9

Americas

37

22

Asia & the Middle East

14

1

Australia & the Far East

7

-

 

FINANCIAL COMPARISON

BA (2007-08) Iberia (2007)

Revenues from operating activities

£8.8 billion

€5.5 billion

Operating profit

£875 million

€284 million

Pre-tax profit

£883 million

€446 million

Passengers carried

£33 million

€32.5 million

Freight tonnes carried

£805,000

€260,601

Employees (average headcount)

£42,000

€24,660