Spanish carrier Iberia posted a record operating loss on Thursday, hit by declining air travel and underscoring challenges facing the industry as the airline seeks shelter in a merger with British Airways, according to Reuters. Iberia said its loss before interest and taxes (EBIT) widened to 464 million euros ($629 million) in 2009. The airline swung to a net loss of 273 million euros as the economic crisis continued to dent passenger numbers and saw revenues fall 19 percent to 4.41 billion euros. In the fourth quarter alone, Iberia's EBIT loss totalled 132 million euros, from a 63 million loss in the 2008 period. The results follow recent mixed numbers from merger partner BA, which posted a surprise third-quarter operating profit, and rivals like Air France-KLM which unveiled heavier than expected losses and said more was to come. BA and Iberia plan to seal a definitive agreement in the first quarter for a merger to create the world's third largest airline by revenue.
