Iberia of Spain on Tuesday became the latest airline to announce capacity cuts as high fuel costs and flagging growth rates produced a sharp fall in first-half net profits.
The flag-carrier, which last week revealed it was in merger talks with British Airways, said profits for the six months to June 30 were €20.7m ($32m), down 72 per cent from the €74.8m reported in the year ago period. This was in spite of almost flat revenues of €2.67bn.
