IAG, parent of BA, loses 630 million euros in 1Q

AP News
Posted: May 10, 2013 12:39 PM

LONDON (AP) — International Airlines Group, which owns British Airways and Iberia, says it is still struggling to integrate the Spanish airline into its operations as it reported a deepening first-quarter net loss of 630 million euros ($827 million) compared to a 129 million euros loss last year.

CEO Willie Walsh says that despite 10 days of industrial action and the weak economic situation in Spain, IAG is adapting — though he acknowledged much more needed to be done.

The company, one of the world's largest airline groups, posted an exceptional charge of 311 million euros in the quarter, principally relating to restructuring at Iberia.

The results come after unions accepted a mediator's proposal reducing the number of planned layoffs to some 15 percent of Iberia's workforce.