Iberia: TRAFFIC STATISTICS – JANUARY 2007

Operating performance

The load factor improved by 4.3 points, to 77.6%, a record level for this month in Iberia’s history. Traffic, measured in revenue passenger kilometres (RPK) went up 10.5%, against a 4.3% increase in capacity. The growing weight of the long haul (more than 65% of total RPK in January) led to an 8.3% rise in the average stage length. Iberia carried more than two million passengers this month, growing by more than 46,000 on long haul flights and 25,000 in the rest of international flights compared to last year.

In the long haul sector, the load factor improved by 3.5 points, to 89.7%, an absolute record in this sector, with increases of 12.0% in capacity and 16.6% in traffic. The mix improvement was maintained, growing the number of Business Plus passengers above 33%. Traffic and load factor improved in all markets, highlighting the excellent performance on South Atlantic flights, with increases of 30.5% in terms of RPK and 2.9 points in terms of load factor.  The Company raised capacity in all countries, increasing the number of frequencies to Sao Paulo, Montevideo and Buenos Aires. In the North Atlantic, due to the addition of new frequencies to New York and Chicago, capacity went up 15% and traffic growth was three points higher than the ASK increase.

In the international medium haul, the load factor improved by 1.7 points, reaching 60.2%. In the competitive European market, where the Company continued to redeploy capacity, the number of ASK was similar to last year. Traffic increased by 2.9%, improving the load factor by 1.7 points. Iberia has continued to strengthen connections with Africa and Middle East, with an increase of capacity and traffic of 25.9% and 23.4% respectively, mainly in Egypt and Israel.

Domestic load factor improved by 5.1 points, reaching 65%. In accordance with the Plan, Iberia continued to develop selective capacity adjustments, leading to a drop of 8.5% in flights to the Canary Islands and a decrease of 14.2% in the rest of routes.

[GADS_NEWS]Highlights

§      Last 7^th of January Iberia launched a new route between Madrid and Algiers with two weekly flights (Sunday and Thursday). Likewise, two new destinations are expected to be launched from Madrid in 2007: Bucharest, next 3^rd of March and Boston, in May.

§      In January, Iberia received a new Airbus A-321. In accordance with the homogenization and reconfiguration Plan for the short and medium haul fleet, 8 additional Airbus aircrafts are expected to be incorporated during 2007.

Today, Iberia is Spain’s leading airline and also leader on routes linking Europe with Latin America. It posted 2005 sales of more than 5,6 billion euros, and net earnings of 396 million euros. 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 32.4 million passengers. It is a charter member of the oneworld airline alliance, along with Aer Lingus, American Airlines, British Airways, Cathay Pacific, Finnair, LAN Chile, and Qantas.