4 MARCH 2013
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A worrying 2012 financial performance by the combined British Airways and Iberia was summed up by Bhaven Patel, trader at Accendo Markets. He said that the loss (£863m overall and £59m operating deficit) was "better than consensus". It included a 20% rise in fuel costs and various exceptional losses.
"IAG full-year results highlight that in the airline business two halves don't always make a perfect whole", he added, hinting that BA should perhaps have been left alone.
IAG was officially listed on the London Stock Market in January 2011, even then suggested as an odd marriage, the partners seemingly not compatible.
The 2012 results were better than expected, the share price rising slightly standing at around 238p at the close of the London Stock Exchange on Friday (1 March). The price was just 140p 12 months ago.
IAG Chief Executive Willie Walsh said that Iberia would press ahead with plans to cut some 3,800 jobs at Iberia as part of a restructuring plan to return the loss-making airline to growth, should there be no agreement with unions next month.
British Airways probable late introduction of the 787 is unlikely to impact with the 2013 figures, which benefit from the bmi takeover and the beginning of the A380 era. www.ba.com
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