Iberia profits down 98 per cent

Iberia profits down 98 per cent

Iberia has reported a 98 per cent drop in half-year earnings on the back of high fuel prices and the global economic slowdown.

Operating profit at the Spanish carrier for the months of January to September dropped to 8.2 million euros ($10.35 million) and net profit fell to 51.1 million euros compared with 223 million euros a year ago.

Analysts have complimented Iberia on a strong balance sheet but say that, like other airlines, it faces strong economic headwinds and limited benefits from falling oil prices due to its hedging.

The airline also reported its traffic and capacity statistics for October, which showed an 8.6 per cent drop in passenger traffic.