Airline holding company IAG has announced plans to cut 4,500 jobs at Iberia as part of a restructuring programme.
The move will see a quarter of the Spanish carrier’s fleet cease operations, as well as 15 per cent of its network capacity, in a bid to shift focus to services that will make more money.
IAG, which was formed from the merger of Iberia and British Airways in 2011, recently announced it expects to record an operating loss of €120 million (£95.7 million) this year, mostly due to financial issues regarding the Spanish company.
On the other hand, British Airways recorded an operating profit of €286 million during the first three quarters of 2012, while Iberia made a loss of €262 million.
Willie Walsh, chief executive of IAG, said: “Iberia is in a fight for survival and we will transform it to reduce its cost base so it can grow profitably in the future.”