Last week IAG reported a net quarterly loss of 630m euros compared with a net loss of 129m euros last year. The loss is reported to be the result of continued struggle in Spain to turn Iberia around.
Reading this, my first thought was that we are in a problem industry when a 129m loss is something to be celebrated. But that asideâ€¦
It's not all doom and gloom for the market, with reports coming out of Europe's three biggest low cost carriers (Easyjet, Ryanair and Norwegian Air Shuttle) suggesting a very different story for new model airlines. According to this article in the FT, Easyjet's stock has more than trebled in the last 18 months, with Ryanair and Norwegian following a similar trajectory. Each carrier's capacity continues to grow and outshine competing short-hall routes from the like of KLM-Air France and Lufthansa.
With this melting pot of growth and financial woes, we're in for a very interesting time at this year's World Low Cost Airlines Congress in September. We're lucky enough to welcome Willie Walsh (IAG), Michael O'Leary ( Ryanair), Bjorn Kjos (Norwegian) and Peter Duffy (Easyjet) on to one stage. Add to the all-star mix Vueling's Alex Cruz, fresh from alliance negotiations with IAG, and we're in for some fireworks!