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( Best Results in Past Five Years
- Operating earnings reached 70 million euros, up by 84.2 million from a year ago, and the EBITDAR grew by 23.7%

- The airline posted a record load factor of 80.2%, a full 2.3 points above that of the same period of last year. Cabin occupancy on long-haul flights climbed 2.9 points to 86.9%

- Business Plus class performed brilliantly, with 8.3 points more seat sales. The load factor reached the 62% target set for December, 2008

- Productivity (operating income per employee) improved by 9.9% from the first half of 2006, and staff levels were cut by 6.6%

- Iberia strengthened its growth strategy in the USA, Eastern Europe and North of Africa, opening up five new destinations, Boston, Washington, Bucarest, Saint Petersburg, Argel, and, in the coming months, also Praga and Varsovia

- Iberia’s net cash position reached 2,211 million euros, up 28.4% since the beginning of 2007
Madrid, August 2nd, 2007
Iberia today reported its results for the first half of the year, when it posted consolidated earnings of 74.8 million euros, the airline’s best performance in the last five years. Operating earnings reached 70 million euros, an increase 84.2 million over the first half of 2006.

The EBITDAR generated in the first half of 2007 amounted to 394 million euros, up 23.7% from the same period of last year.

Operating income came to 2,666.6 million euros, an improvement of 2.6% over the same period in 2006, while recurring expenses were trimmed by 0.7% to 2,596.6 million. Total operating expenses were 2.3% lower in the period.

Of income items, passenger revenues, which account for nearly 80% of the total, were up by 2.1%, while revenues from freight rose by 6.2% thanks to larger volumes of freight and mail, and income from maintenance on behalf of third-parties grew by 27.4% to reach 131 million euros, largely due to the increase in high-level engine maintenance tasks for other airlines. As expected, additional competition in the airport handling business led to a 12.5% decline in income from this activity.

Unit revenues, expressed as operating income per ASK (available seat kilometre) rose by 2.4% to 8.19 euros. Unit costs, in contrast, decreased by 0.9% to 7.97 euros. Passenger revenues per ASK also rose by 1.1%.

Higher Productivity

Recurrent payroll costs –the company’s largest expenditure– came to 685.3 million euros, a 2.1% decline with respect to the same period of last year, and the decrease is 5% when non-recurring personnel costs are included. This represents a productivity increase of 9.9%.

Fuel costs, which account for 20.5% of total group operating expenses, reached 532.6 million euros in the first six months of 2007, which was 28 million euros less than in the same period in 2006, thanks chiefly to the depreciation of the U.S. dollar against the euro and to the lower unit consumption of the fleet, whose efficiency pushed total fuel charges down by 8.6 million euros.

Fuel costs rose gradually since early January, when they hit the low for the year, and more steeply in July, reaching $78.00/bbl (of Brent). Iberia has covered 50% of its fuel requirements for the second half of the year at an average cost of $61.50/bbl.

Record Cabin Occupancy and Excellent Business Plus Class Performance

In the first half of the year, Iberia’s load factor improved by 2.3 points, reaching 80.2% overall, far outstripping to the half-point average gain (provisional data) by European airlines belonging to the AEA. Seat sales were 3.2% larger that those of the first half of last year, while seat supply rose only 0.2%.

In keeping with the goals set in Iberia’s strategic plan, long-haul routes logged the strongest growth, with a 10.1% increase in RPKs (revenue passenger kilometres), and a 6.5% rise in ASKs (available seat kilometres).

The load factor on these routes increased by 2.9 points to 86.9%. In Business Plus Class on transatlantic routes the number of passengers rose by 23.7% compared to last year. The load factor in this class grew by 8.3 points. This contributed to a 6.5% increase in unit revenues (yield) on these routes, with 10.2% growth in yields per ASK and a 17.3% increase in total passenger revenues.

Iberia strengthened its growth strategy in the USA, Eastern Europe and North of Africa, opening up five new destinations, Boston, Washington, Bucarest, Saint Petersburg, Argel, and, in the coming months, also Praga and Varsovia.

A Net Cash Position of More than 2,200 million Euros

As of June 30, 2007, the company’s net cash position was 2,211.3 million euros, 28.4% higher than its level at the close of 2006.

Today, Iberia is Spain’s leading airline and also leader on routes linking Europe with Latin America. It posted an operating income of about 5.4 billion euros, net earnings of 116.1 million euros and an Ebitdar of 790.5 million euros in 2006. It is also distinguished by its commitment to socially and environmentally responsible conduct. Along with its franchise partner Iberia Regional, Iberia operates some 1,000 flights each day to about 100 different destinations. Last year, Iberia carried a total of 33 million passengers. It is a member of the oneworld airline alliance, along with American Airlines, British Airways, Cathay Pacific, Finnair, JAL, LAN, Malev, Qantas and Royal Jordanian.

Iberia International Press Office Tel.: +34 91 587 7732 / 7462 / 7465 Fax: +34 91 587 7469 E-mail:

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