Iberia has taken further steps to cut costs. The Spanish carrier has implemented more fleet groundings and order deferrals as it seeks to cut capacity by 6% this year, against a previously projected 4.3% reduction.

In a presentation to investors, newly appointed managing director Rafael Sánchez-Lozano revealed the grounding of three additional Airbus A320s and the delay of an A340-600 order.

These measures follow the grounding in May of five A320s, the cancellation of a wet-lease contract "that will be operated through dry" as well as the delay of one A340-600 delivery from October this year to September 2010. Iberia's operating fleet will be reduced by 10 aircraft. The airline has three A340-600s on order.

The carrier posted a €72.8 million ($103.6 million) net loss in the second quarter to 30 June 2009, while year-on-year revenues fell €300 million to just €1.07 billion. Chief executive Antonio Vazquez says the decrease in revenues is due to the deterioration in the mix and yield pressures in line with the rest of the industry.

 © Iberia

Source: Flight International