TRBusiness understands that Iberia’s inflight duty free tender now comprises a short list of three specialist inflight sales service companies.

 

These include the joint venture between gategroup and the Inflight Sales Group (ISG); Tourvest Inflight Retail Services; and Dutyfly Solutions; – the wholly-owned subsidiary of Lagardère Travel Retail (50%) and Servair (50%).

 

 

The Iberia inflight business has previously been run by both Aeroboutique Inflight Retail – and prior to that, Duty Free World – and was widely expected to form part of the International Airlines Group’s long running British Airways inflight duty free concession process, although this is no longer the case.

 

FINANCIAL IMPROVEMENT

Last year IAG-owned Iberia recorded an operating profit of €247m, up €197m versus the previous year, achieving an adjusted operating margin of 7.0%. The airline also made ‘significant progress’ on its ‘Plan de Futuro’, improving its cost base and recovering previously withdrawn routes.

 

Capacity for the year was up by 10.2%, with a flat unit revenue performance in euro terms, driven by currency benefits from a weak euro and improvements in seat factor.

 

IAG claims that the turnaround of Iberia is leading to a profitable and efficient new airline capable of growing in its strategic markets and ‘starting to achieve positive returns for the Group with a positive profit after tax of €155m’.