Iberia has implemented a severe contingency plan in response to the steep decline in demand and revenues, after posting a loss of EUR 92.6 million in the first quarter of 2009.
The plan will enable the company to cut losses by between EUR 110 and 125 million, and it also foresees an 80-90 million reduction in investment spending. It includes four types of measures: a cutback in capacity, a reduction in labour costs, a reduction of purchases and external costs, and a review of the investment programme, aimed at postponing all investments not related to improving customer services or having a direct impact on earnings.
Effective in May, Iberia will withdraw five Airbus A320s from service. The delivery of new aircraft will be postponed, those operating under wet lease will now be flown by Iberia and smaller aircraft will be used on some routes and time slots.
