MADRID – The profits of Spain’s principal airline, Iberia, fell 8.6 percent last year, it was reported Wednesday.

The carrier reported profits of EUR 141.6 million for 2003.

Iberia cited the war in Iraq, the SARS epidemic, the weakness of the US dollar, higher fuel costs and competition from low-cost airlines as reasons for the earnings decline.

Iberia’s 2003 income fell 1.7 percent to EUR 4.62 billion, the carrier said.

The Spanish flagship airline reduced its debt 17 percent to EUR 1.84 billion by applying cost-cutting measures to its leased fleet of planes, despite acquiring seven new aircraft.

[Copyright EFE with Expatica]

Subject: Spanish news