Iberia Confirms 2008 Operating Loss

Spanish airline Iberia confirmed on Friday it made an operating loss of EUR79 million euros (USD$100 million) in 2008 as weakening demand prevented it handing on high fuel costs.

The airline, which is in merger talks with British Airways, said net profit fell 90 percent to EUR32 million compared to a EUR328 million profit in 2007.

The figures were the same as estimates that management gave a month ago when they presented Iberia's latest three year strategic plan aiming to add EUR450 million to earnings before interest and tax.

Iberia said income fell 1.3 percent to EUR5.45 billion, while earnings before interest tax, depreciation, amortization and aircraft rentals (EBITDAR) was down 46 percent to EUR500 million.

Europe's fourth-biggest airline by value said it had a EUR1.67 billion fuel bill -- 46 percent higher than in 2007 -- after oil spiked at just under USD$150 a barrel in July.

Iberia posted a fourth-quarter net loss of EUR19 million, having made a EUR105 million profit for the three-month period a year earlier.