In January 2013, Group traffic measured in Revenue Passenger Kilometres rose by 0.7 per cent versus January 2012; Group capacity measured in Available Seat Kilometres was down 1.0 per cent.

Group premium traffic for the month of January grew by 2.7 per cent compared to the previous year, with a 0.3 per cent growth in non-premium traffic.

Underlying market conditions remain unchanged from those described at IAG Capital Markets Day on 9th November. There is continued firmness in trends at British Airways and weakness in Spanish markets as in the previous months.

STRATEGIC DEVELOPMENTS
On February 1st, IAG confirmed that no agreement had been reached between Iberia and its trade unions over the airline’s transformation plan. Iberia will press ahead with the previously announced capacity reduction of 15 per cent for 2013. IAG will also move forward on alternative plans to return Iberia to break-even, in terms of operating cash flow, by the second half of this year and restore Iberia to an acceptable level of profitability by 2015.

On January 31st, Malaysia Airlines joined oneworld alliance adding one of Asia’s leading airlines to the group. Malaysia Airlines, which serves more than 60 destinations in almost 30 countries, will substantially expand the alliance’s network in one of the world’s fastest growing economic powerhouses, South East Asia.

Iberia unveiled its new long haul business and economy class cabins at the Fitur travel fair in Madrid. The new product will be introduced with the first of the new Airbus A330-300 being delivered in February.