Load Factor Improves for the Second Following Month

(Madrid, August 11th, 2009) -- Iberia's load factor reached 84.8% in the overall network, 0.2 points above July 2008. Capacity was reduced by 3.8% to adjust it to the evolution of the demand, which dropped 3.7%. Both year on year declines are lower than the ones reported in the previous two months and the deterioration of passenger unit revenue has also been slightly lower. In the long haul flights load factor stood at 86.9% (-2.2 points), with a reduction of 2.2% in ASKs. Traffic -measured in revenue passenger kilometres (RPK)- went down 4.6%. The important mix deterioration that Iberia has been experiencing in the last months moderated in July. In Latin America, capacity and traffic fell by 1.1% and 3.6%, respectively, leading to a load factor of 86.7% (-2.3 points). It is important to highlight the capacity decline of 35% in the flights to Mexico, adjustment that the Company has been doing since May. In North America traffic narrowed 7.9% and capacity decreased 4.6%, while load factor stood at 87.6% (-3.1 points). In Europe load factor rose 2.8 points with respect to the previous year, reaching 83.8%, the highest level for this segment in a month of July in the history of the company. The fall of 5.0% registered in traffic was lower than the reduction of ASKs (-8.1%), after significant adjustments in some links to Europe. The average stage length in this segment grew around 3.9%. In Africa and Middle East traffic climbed by 6.7% and capacity increased 6.1%, while load factor improved 0.5 points to 80.3%. In the European flights with origin and destination Madrid, demand fell slightly (-0.3%) and load factor climbed 2.0 points. In the domestic sector load factor grew 5.6 points to 78.0%, with a reduction of 6.0% in the capacity and an increase in the demand of 1.3%, the first year on year increase of the traffic in this segment since January 2006.
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Source: Iberia
Date: Aug 12, 2009