Iberia resumes Montevideo flights

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Iberia is to resume operations to Montevideo, Uruguay after a year and a half interruption, in one of the first signs of a return to growth since securing new productivity deals with its staff.

The Spanish carrier will operate four weekly flights between Madrid and the Uruguayan capital from the start of September

Iberia says it wants to connect Montevideo and Europe, as 52% of passengers on these flights are travelling onward to other European cities.

The Spanish national carrier announced plans to cut services to Havana, Montevideo, San Juan and Santo Domingo in December 2012 as part of its new transformation plan to return the business to profitability.

At the time, chief executive Rafael Sánchez-Lozano cited the requirement for Iberia to change its commercial model and said it was dropping its biggest loss-making routes which could not be operated profitably at the time. But it let the door open to resuming these routes once the carrier had restored profitability. It has since heavily restructured recently secured new productivity deals across its staff.

In June 2013, Spanish SkyTeam member Air Europa launched new non-stop service between Madrid and Montevideo.