Recently posting its performance for the first half, Iberia has announced a loss of around EUR32.2 million euro million during the first half from a earlier profit record of EUR69 million. The airline noted that the adverse performance was due to the rise of fuel prices and the fall in demand. When the fuel bill of the carrier soared up to 38 percent to EUR732 million, the Spanish carrier however said that the unit costs excluding fuel came down by 6.2 percent.

Besides this, the firm did not give any details on how much fuel hedging has been made by the company so far. The company gave no details on its level of fuel hedging. However, earlier the recent update by the company observed that the company could so far hedge fuel for about 48 percent of its fuel needs for the year 2008 at the price of USD$83 a barrel.

Though the airline could successfully retain the sales of EUR2.67 billion, which was totally unmoved from a year ago, the net profit of EUR20.7 million was not more than a quarter of last year's result. According to the statement made by Chairman Fernando Conte, it appears that Iberia has plans to buy more shares of the merger partner during the forthcoming months.

In a recent statement made by the airline, Iberia has strongly blamed the soaring costs of fuel and the weakening of demand for a significant and sharp drop in its earnings. Most notably, the airline has lost €32.2m (£25.5m; $50.2m) during the first half of the year. This is a clear contrast from the situation where the operating profits of the company were valued at €69m just a year ago. The news has come at a time when the airline is at the verge of deciding over a possible merger with British Airways. Also, Iberia has come forward to increase its stake in BA.

Iberia has recently reported that the fuel costs for the airline have gone up by 38% to €732m. It has also stated that the introduction of a brand new Madrid-Barcelona high-speed rail link and the surplus capacity in the Spanish domestic market highly affecting the number of passengers. The soaring prices of fuel has contributed to a 4.1% rise in the operating costs at Iberia, thereby offsetting a marginal increase in revenues, up 0.1%, working out to €2.6 billion. Notably, the airline has already implemented a cut back on its internal flights in addition to contemplating on further capacity cuts later in this year.

On the other hand, Ferando Conte, the Spanish airline's chairman noted that Iberia has planned to purchase more shares in merger partner BA during the forthcoming months. Also, the airline stated last week that it had a 2.99% direct stake in BA, besides a plan to increase the holding to 9.99% before the two airlines merge.

According to a recent newspaper report, American Airlines, British Airways and Spain's Iberia are just about to finalize an antitrust immunity to give way to a joint venture. Citing the executives of the three airlines, the Financial Times noted that the airlines aim to reach an accord on profit and revenue sharing during this month.

American and BA are intending to argue a case with US regulators since they both feel that the competitive landscape has been changed due to the "open skies" accord. Notably, the open skies agreement came into force between the United States and the European Union in March, permitting airlines to access any US city from any location in the EU and vice versa.

The agreement assures to increase the competition between different carriers besides cutting ticket prices and eventually give way for transatlantic mergers to create the first global airlines. BA and American are also arguing that the recent wave of mergers and new alliances have invariably made many of their biggest transatlantic rivals grow stronger, which have antitrust immunity with their partners across the North Atlantic. This has been told in the paper.

The head of the Spanish carrier Iberia's main shareholder, Caja Madrid, said on Tuesday though the company is suffering from the higher prices of oil but should still earn a profit this year.

The Spanish airline, 23 per cent owned by a savings bank Caja Madrid, racked up an operating loss (EBIT) of 28.3 million euros and net losses of 441,000 in the first quarter, affected by higher costs of fuel and higher competition in the market.

Speaking at a financial conference in Santander, northern Spain, Mr. Miguel Blesa, Caja Madrid Chairman said, "The situation at Iberia is complicated. It is being very affected by the price of oil, but it's not going to fall into loss".

The inaugural flight of Iberia to Dubrovnik will take off tomorrow from Terminal 4 at Madrid airport with more than 85 per cent of seat occupancy.

The Spanish carrier will operate the flight to Dubrovnik from the 7th of June until the 12th of October.

It will fly three return flights on Tuesdays, Saturdays and Sundays in the months of July, August and September.

Spain's Iberia said on Thursday that it would give up its bid for Spanair, shortly after the Chairman said that the carrier was reconsidering its stand on the move due to tough times in the industry.

In a statement issued to the Spanish Stock Exchange after the closing of the market, Iberia said that it would take out its bid as there was no agreement on conditions of the offer.

Shares of the airline all over the world have been affected in recent months as a result of a huge rise in oil prices and a slowdown in economic development, making its bid steeper than when the board of the Spanish carrier passed an offer in the month of February.

Confirm your seat booking by the 14th of March and enjoy discounted flights to a number of South American destinations from London Heathrow.  Iberia is offering cut-priced seats on its flights between London Heathrow and a number of destinations in South America.

There are lots of offers and destinations offered by the airlines, and you should go for it if you are planning for any of these routes in future. The destinations offered by the carrier include:

From London Heathrow to: Caracas beginning at a price from just £506, Sao Paolo starting at a price from just £516, Rio de Janeiro starting at a price from just £546, Quito/Guayaquil beginning at a price from just £615, Buenos Aires beginning at a price from just £621, Panama starting at a price from just £626, Santiago de Chile starting at a price from just £636, Bogota starting at a price from just £647, Lima beginning at a price from just £679, and Montevideo beginning at a price from just £717.

Intimation is given by the Spanish airline Vueling that the goal of 2007 will not be achieved due to thick loss in the first half, with touching a stream in its shares. In comparison to the yield of 7.38 million last year, the adversary burden on fares and increasing fuel prices brought a loss prior to interest, tax, depreciation and aircraft rentals of 7.76 million euros.

With EBITDAR among 23 million and 42 million euros, the sale was assumed to go up by 57 to 64%.

Portuguese brokers BPI says," Vueling has posted very disappointing and dreadful figures and also has more than halved its guidance at the EBITDAR level for 2007".

Spanish market is the cause of collision course between the two airlines: Ryanair and Spainair. Ryanair is the leading low-cost airline in Europe. It plans establishing two more operating bases in Spain.

The Irish airline, is nearly finalizing a deal in Valencia and Alicante. The carrier has the broadest spread of operations across Europe of any airline. It has 20 bases in eight countries.

The Spanish network is expected to grow to 9m passengers a year including the Madrid base. Ryanair has opened its base in Madrid having five aircrafts and 15 routes to date.