Unions at Spain's flagship airline Iberia began a second week of strikes on Monday, with 1.300 flights canceled and most passengers re-assigned to other flights. Iberia and three smaller airlines that it provides with ground services -- Iberia Express, Vueling and Air Nostrum --- have been impacted by the action, an Iberia spokesman said.
British Airways parent International Consolidated Airlines Group (IAG) has pledged to push through a plan to shrink Spanish arm Iberia by 15% and deliver a profit rebound this year following a group-wide loss last year.
International Airlines Group has reaffirmed that it would keep Vueling as a stand-alone entity within the group if it completes its plan to acquire the outstanding shares in the Barcelona-based low-cost carrier.
Loss-making Iberia on Friday announced plans to axe 4.500 jobs to save Spain's biggest airline from collapse and warned more cuts could follow against the backdrop of economic crisis in the Euro zone country.
Rising fuel costs and the impact of Spain’s economic crisis left the owner of British Airways and Iberia nursing big quarterly losses. International Airlines Group was also hit by industrial action by pilots at Iberia as it recorded losses of 263 million Euros for the three months to March 31, against a deficit of 47 million Euros a year earlier.
British Airways and Iberia have registered their merger, forming a holding company International Airlines Group SA.