Spanish airline Iberia said on Monday it aimed to boost profit by EUR600 million (USD$716.6 million) over the next three years, partly by cutting 9 percent of its staff.
The gains will come from extra revenue and over 2,000 job cuts by the end of 2008, Iberia said in a presentation to analysts. It did not specify which profit figure it was using.
The airline said net profit in the first nine months of the year increased by nearly threefold to EUR402 million (USD$480.1 million), swelled by gains from the sale of part of its stake in travel reservation company Amadeus.
It booked EUR600 million (USD$716.6 million) of net gains from the sale, out of which it paid a special dividend of about EUR285 million (USD$340.4 million) to shareholders.
But earnings before interest and tax fell 23.5 percent to EUR109 million (USD$130.2 million) as it struggles with high fuel costs.
Chairman Fernando Conte said on Monday that fuel cost forecasts were looking a little more optimistic and added that nearly 70 percent of the airline's fuel costs were hedged.
The company said it would make a provision of EUR280 million (USD$334.5 million) this year to fund staff cuts, adding that the costs of the entire staff reduction element of the latest plan would be recouped within 2-1/2 years.
The airline's strategic plan sees unit costs excluding fuel falling by between 8 and 10 percent on a nominal basis over the three-year period.
Iberia said it continued to search for acquisitions, especially in Latin America, that would add value to the company but that it had found few opportunities.
The Spanish flag carrier withdrew from the bidding process to buy one of two state-owned Mexican airlines earlier this month, dashing expectations it might enter the low-cost market through this route.
The airline said it would gradually cut its fleet from 152 planes this year to 132 at the end of its latest strategic plan in 2008. The reduction would take place largely in its short-haul and medium-haul fleet.
It aims to increase revenue from business class passengers and increase its capacity by reconfiguring its fleet in short and medium-haul.
