The airline group has been carrying out a controversial restructuring of Iberia, which has seen 1,700 job cuts already. That figure is expected to rise to 3,000, while flight and cabin crew remaining at the airline have accepted an 18% pay cut.
‘This is the first step in the restructuring but it is already bearing fruit with Iberia's [second quarter] losses down from €93m last year to €35m, reversing the negative trend of the last 11 quarters,’ said IAG chief executive Willie Walsh
British Airways - one of IAG's subsidiaries - made a €247m operating profit during the second quarter, way up from €94m in 2012.
IAG was formed through the merger of BA and Iberia in 2011: the group also owns Spanish budget airline Vueling which generated a €27m operating profit during the second quarter.
Investors love the news, IAG is the biggest riser on the FTSE 100 this morning, its share price is currently up 4.31% at 309.9.