Iberia posted bigger than expected nine-month operating losses Friday, evidence of the difficulties it aims to address by the planned merger with British Airways announced Thursday.
"The airline industry in Spain is facing exceptionally difficult circumstances," Iberia said in a statement.
Iberia and BA have agreed a USD$7 billion merger to create the world's third-largest airline by revenue in an aim to cope with the industry's largest downturn in decades.
The International Air Transport Association expects airlines to lose USD$11 billion in 2009.
Iberia said its loss before interest and taxes widened to EUR331 million euros.
The airline swung to a net loss of EUR181.9 million from a EUR51.1 million profit a year ago as the economic crisis continued to dent passenger numbers, Iberia said Friday.
Iberia carried 5.1 percent fewer passengers in October, while its load factor improved to 80.6 percent.
