IAG CEO says all group units profitable in 2014

22nd Oct 2013 14:28

International Consolidated Airlines (IAG) will be profitable across the group in 2014, according to Chief Executive Willie Walsh. Addressing an industry conference in London on Tuesday, Walsh said beleaguered Iberia would return to profits next year and was on the road to recovery, after a demanding period of restructuring. He said: "Iberia was in a significant crisis but is well on the path to recovery. Iberia will be profitable next year, like BA and Vueling already are."FTSE 100-listed IAG, which was formed through the merger of British Airways and Iberia in 2011 and acquired low-cost Vueling earlier this year, has also pondered the legal implications of the Italian government's rescue of Alitalia. Walsh told an audience at the AOA airports conference in London that the rescue was "blatant state aid and we're opposed to it".He said: "Airlines that take state aid drag airlines that are doing things properly down."He said the company intended to carefully examine its legal options and called on the European Union to "stand up and implement the rules that exist".In August IAG reported that the first step in Iberia's restructuring has seen nearly 1,700 employees leave the Spanish carrier so far, with remaining staff accepting salary reductions of between 18% and 11%.The group made a total second-quarter operating profit of €245m as the restructuring costs held back headline performance.OH