Spanish carrier Iberia has cut second-quarter losses by more than 60%, to €35 million ($46 million), parent company IAG has disclosed.
IAG's operating profit for the three months to 30 June reached €245 million after British Airways posted a surplus of €247 million.
Low-cost carrier Vueling, which joined IAG at the end of April, achieved a €27 million operating profit.
IAG's revenues for the second quarter were up by 3.4% while it cut costs by 2% and its net profit for the period reached €147 million.
Iberia weighed heavily on IAG's half-year results.
The Spanish carrier turned in an operating loss of €551 million for the six months, although this included an exceptional charge of €312 million relating to its restructuring.
British Airways, in contrast, achieved an operating profit of €175 million for the half-year.
Chief executive Willie Walsh says the benefits of Iberia's restructuring are "beginning to show", following a reduction in capacity and removal of costs, partly through salary reductions and a slashing of headcount.
"This is the first step in the restructuring but it is already bearing fruit," he says, adding that the figures show Iberia is "reversing" a negative trend that has persisted for 11 quarters.
British Airways' performance, he says, reflects strong London and transatlantic markets while legacy costs from the integration of BMI "have ended".