Iberia Named CAPA Airline Turnaround Of The Year
This award is given to the airline that has had the most impressive turnaround while establishing an innovative strategic direction for their business and the industry.
Iberia CEO Luis Gallego received the award from Mr Harbison.
Iberia recorded its first positive operating result in 2014 since the global financial crisis and in 2015 confirmed its turnaround with its operating profit increasing almost fivefold. Iberia’s operating margin was up 4ppts in 2015 to 5.2%, its best showing since 2005.
“Iberia’s turnaround in the challenging Spanish market has been remarkable,” Mr Harbison said. “Iberia has achieved major labour productivity improvements, quite an accomplishment in Europe, and unit cost reductions. Strategically the establishment and expansion of Iberia Express has demonstrated that it is possible for legacy European airlines to combine an LCC cost base with a full service brand.”
CAPA noted that the significant improvement in profitability has come while Iberia has resumed expansion, with double digit capacitygrowth in 2015. Iberia was the biggest contributor to ASK growth at parent IAG in 2015.