In the overall network, load factor improved by 2.2 percentage points with respect to the previous year, to 85.2 per cent. Revenue Passenger Kilometres (RPK) grew by 2.2 per cent and capacity measured in Available Seat Kilometre (ASK) fell 0.4 per cent. Unit revenue per ASK increased significantly and the difference with respect to last year continued to widen despite a 7.2 per cent growth in the average stage length. The major progress in load factor and yield (revenue/RPK) was in the haul flights.

In the long haul, load factor improved 3.7 points with respect to June 2009, reaching 89.5 per cent, with an increase of 6.8 per cent in RPKs and an adjustment of 2.4 per cent in capacity. The mix keeps on improving, with an 8 per cent rise in Business Plus passengers. In Latin America the load factor reached 89.5 per cent (+ 4.2 points), with an increase of 3.8 per cent in traffic an adjustment of 1.1 per cent in ASKs. In the North Atlantic the load factor stood at 90.4 per cent (+2.9 points), RPKs and ASKs grew 4.1 per cent and 0.8 per cent, respectively. In June, as a consequence of the football world championship, capacity and traffic in flights to South Africa jumped 150 per cent.

In Europe load factor reached 79.3 per cent, 1.7 points less than in the previous year, with drops of 6.8 per cent in traffic and 4.8 per cent in capacity. In the European flights with origin or destination Madrid, the decreases in RPK and ASK were lower (-4.2 per cent and -2.3 per cent, respectively). In Africa and the Middle East load factor improved 2.1 points to 73.3 per cent, with a reduction of 3.5 per cent in ASKs and a weak fall in RPKs (-0.6 per cent).

Load factor grew in the domestic sector by 0.3 points (76.9 per cent), with a reduction in capacity of 5 per cent, similar to the decrease in traffic (-5.4 per cent). Both reductions are the lowest of the four previous months. In flights between Madrid and Barcelona RPKs went up by 11.5 per cent and load factor improved by 15.4 points.

In the second quarter, and in the overall network, load factor improved by 1.3 percentage points with respect to the previous year, to 82.5 per cent, with a reduction in the capacity of 0.7 per cent (-2.2% in traffic).

Highlights

• In June Iberia adds a new Airbus A340/600 to its fleet, after other two were already incorporated during the year, so the company operates 35 Airbus A340s, 16 of each are of the model 600 (it has a capacity of 342 seats). All of them are configured with the new Business Plus.

• Iberia was chosen as the best airline on routes to South America in the 18th annual Travelranking awards, given out by the travel magazine Agenttravel.

Iberia press release, Madrid, 13 of July of 2010

The European Commission has cleared under the EU Merger Regulation the proposed merger between British Airways of the UK and Iberia of Spain, both active in air passenger and cargo transport and related services. The Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

British Airways provides scheduled air passenger and cargo transport as well as related services (groundhandling and maintenance, repair and overhaul (MRO) services). It serves some 150 cities in about 75 countries with an additional 215 cities served under various code-sharing relationships. It has several subsidiaries (CityFlyer, OpenSkies) and franchisees (Comair and Sunair). British Airways has its main hub at London Heathrow airport and also operates bases at London Gatwick and London City.

Iberia provides scheduled air passenger and cargo transport and related services (groundhandling and MRO services). It serves more than 106 destinations in over 43 countries with an additional 110 cities served under various code-sharing relationships. Its main hubs are in Madrid and Barcelona. IB's operations in Barcelona are carried out mainly through its subsidiary Vueling. IB's franchisee Air Nostrum operates mostly on Spanish domestic routes.

Both British Airways and Iberia are members of the oneworld alliance. Their activities overlap in the areas of passenger transport by air, cargo transport by air, groundhandling and MRO services.

Regarding passenger transport, the Commission examined notably the impact of the proposed transaction on the short-haul routes London-Madrid and London-Barcelona. The Commission's investigation showed that the merged entity will continue to face sufficient competition from other carriers active on these routes, and therefore that passengers will have adequate alternatives to fly on these routes after the merger.

The Commission also examined the effects of the proposed merger on a number of short- and long-haul routes on which one party offers a non-stop connection while the other party offers a one-stop connection, or on which both parties offer one-stop connections. Also on these routes, the Commission's investigation showed that the merged entity will continue to face enough competition after the merger.

Finally, the Commission's investigation confirmed that the merged entity will also continue to be subject to competition from a number of competitors on the markets for air cargo transport and groundhandling services, and that the proposed merger will not have a significant impact on the market for MRO services.

The Commission therefore concluded that the transaction will not significantly impede effective competition on any of the markets concerned by the proposed merger.

Further information will be available at:

http://ec.europa.eu/competition/elojade ... e=2_M_5747

EU press release, Brussels, 14 July 2010