Iberia H1 loss narrows, travel demand recovers

Spain's Iberia posted a narrower than expected first-half operating loss on Friday as improving business travel and air cargo demand eased the negative impact of a volcanic ash cloud in April.
Iberia, which plans to merge with British Airways before the end of the year, said it had lost 72 mln euros in the six months to end-June, beating analyst forecasts for an operating loss of 88 mln.
Revenue rose 2.8% to 2.23 bln euros in the six-month period, underpinned by a recovery in business class and cargo traffic, while net losses narrowed to 21 mln as the airline continued to implement strict cost controls.
A poll of Reuters analysts was forecasting first-half revenue of 2.196 bln euros and a net loss of 41 mln.
Iberia said it booked about a 20 mln euro net loss on disruptions to air travel from the Icelandic volcano, but this did not prevent it from posting a net profit both at the operating and net levels in the second quarter.