International Consolidated Airlines Grp : December 2011 - Group Traffic and Capacity Statistics

• In December 2011, Group traffic measured in Revenue Passenger Kilometres rose by 12.2 per cent versus December 2010; capacity measured in Available Seat Kilometres was up 11.5 per cent.  
• Group premium traffic for the month of December grew by 13.6 per cent compared to the previous year, with 12.0 per cent growth in non-premium traffic.
• Overall figures were positively impacted by the non-recurrence of poor weather in December last year, which particularly affected British Airways.
• In December, Iberia pilots' union went on strike for two days: Iberia operated 68 and 64 per cent of its flights on December 18th and 29th, respectively.
• Underlying market conditions appear unchanged, but there was a significant reduction in Iberia's short haul premium traffic compared to last year, influenced by the strikes during the month and the weakening economic environment.

STRATEGIC DEVELOPMENTS

On December 22nd, IAG and Lufthansa reached a binding agreement for IAG to acquire bmi for £172.5 million in cash, though the price is subject to significant reductions. The deal requires competition clearance.

Rising UK Air Passenger Duty has led British Airways to reduce its recruitment levels in 2012. It will now only create 400 extra jobs rather than the 800 previously planned. The airline will also postpone plans to bring an extra Boeing 747 into service in summer 2012, and review the use of two others.

Iberia has begun to recruit pilots for its new subsidiary Iberia Express with more than 1,600 applying so far.