Iberia to raise ticket prices unless crude falls
14 September 2005, MADRID — Iberia is to raise the price of its tickets in the next few weeks if there is no fall in the price of petrol.
14 September 2005
MADRID — Iberia is to raise the price of its tickets in the next few weeks if there is no fall in the price of petrol.
Fernando Conte, president of Iberia, said the crude oil price hike this year has cost the company "dozens of millions of euros".
He said he did not rule out cutting less-profitable routes next year if things did not improve.
"We are looking to see how the price moves in the next few days, but we can say that the impact this year will be in millions of euros and there is no other remedy but to raise ticket prices, if crude stays the same or goes up further," he said.
Iberia has agreed a deal to buy 65 percent of its fuel for the second part of the year at USD 45 per barrel.
But it will have to pay the market price for kerosene.
Conte said it would save EUR 600m by cutting less profitable routes next year.
He added that it would not be inconvenient to cut these routes.
Conte said Iberia was still studying the possibility of starting a low-cost airline but no decision had been taken.
Iberia is to freeze salaries after rises of 22 percent during past three years.
Conte said the company could not maintain any more rises.
[Copyright EFE with Expatica]
Subject: Spanish news