Iberia reports net profit surpasses analysts’ expectations
Reported by: Eric CRWE Newswire Middle East correspondent
Iberia Lineas Aereas Espana SA (MCE:IBLA) reported the net profit of Euro 31 million for the second quarter as compared to net loss of Euro 73 million for the same period last year. The company also exceeded expectations of analysts as most experts projected the profit of 7 million Euros for the airline giant.
The company’s revenue advanced 10 percent to Euro 1.13 billion for the quarter. According to the IBLA the company expanded its network of flights between Spain and Latin American which contributed to substantial increase in its revenue.
Iberia also benefited and acquired more market share as its main competitor Air Comet ceased operations. Now Iberia is also reducing its flights in the Spanish domestic market and increasing the international flights between Latin America and Spain which appears to be more lucrative.
Analyst Jesus Aparicio from Ahorro Corporation commented, “These are a great set of results with an improvement in margins, lower debt and a better cash position, Iberia should be trading at a premium to British Airways, not at a discount as it currently trades.”
According to the company it also saved huge numbers in fuel costs as Iberia’s total fuel costs dropped 9 percent to 266 million Euros in the current quarter as compared to last year.
As for the news, Iberia entered in an agreement for a merger with British Airways PLC in April which will be completed by the end of 2010.
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Tags: acquisitions, Air Comet, British Airways, Crown Equity Holdings Inc, CRWE.OB, Iberia, IBLA, mergers, OTC: CRWE
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