Hats off to IAG as Iberia returns to profit – and why you may be flying it more often

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A self-congratulatory page has appeared on the Iberia website celebrating the return to profit of the airline. For once, I don’t blame them for running it.

Some people hold the view that the acquisition of Iberia by British Airways in 2009 (although it took until 2011 for the deal to complete) was primarily an attempt by BA to get its hands on Iberia’s €1bn cash pile at a time when BA was not in the best of health.

Handing over 45% of the combined IAG to Iberia’s shareholders in return for a loss-making airline with, literally, a litany of ‘Spanish practices’ seemed – and still seems – generous to put it mildly.

Let’s give IAG some credit. Iberia has gone from losing €1m per day to being profitable.

Routes which were ditched as unprofitable have been reintroduced – I wrote about the new Cuba and Colombia services on Sunday.

Iberia’s new business class seat, which I flew in 2013, is fully flat and available on almost all the fleet

16 new long-haul aircraft – 8 x A330’s and 8 x A350’s – were ordered last year for delivery through to 2020

In June, August and October last year, Iberia was the most punctual airline in the world according to FlightStats with 91% of aircraft departing on time. This is despite the massive job cuts that IAG managed to negotiate with the unions and which formed the basis of the turnaround.

They even have a modern logo at long last!

Iberia still has some way to go, of course. In the first nine months of 2014, budget sister airline Vueling was almost as profitable – €140m vs €162m – despite being smaller, and British Airways made €607m. You can see why, even now, giving Iberia 45% of the merged business was over the top.

New Iberia routes to Manchester and Edinburgh will be launched this year. With Iberia redemptions now SUBSTANTIALLY better value than BA redemptions under the new Avios structure, we may all find ourselves spending more time in Madrid.

How to earn Avios points from UK credit cards

How to earn Avios from UK credit cards (December 2021)

As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!

There are two official British Airways American Express cards with attractive sign-up bonuses:

British Airways BA Amex American Express card

British Airways American Express

5,000 Avios for signing up, no annual fee and an Economy 2-4-1 voucher for spending ….. Read our full review

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points, such as:

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Run your own business?

We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios:

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company Read our full review

You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus: