Hats off to IAG as Iberia returns to profit – and why you may be flying it more often

A self-congratulatory page has appeared on the Iberia website celebrating the return to profit of the airline.

For once, I don’t blame them for running it. 

Some people hold the view that the acquisition of Iberia by British Airways in 2009 (although it took until 2011 for the deal to complete) was primarily an attempt by BA to get its hands on Iberia’s €1bn cash pile at a time when BA was not in the best of health.

Handing over 45% of the combined IAG to Iberia’s shareholders in return for a loss-making airline with, literally, a litany of ‘Spanish practices’ seemed – and still seems – generous to put it mildly.

Let’s give IAG some credit.  Iberia has gone from losing €1m per day to being profitable.

Routes which were ditched as unprofitable have been reintroduced – I wrote about the new Cuba and Colombia services on Sunday.

Iberia’s new business class seat, which I flew in 2013, is fully flat and available on almost all the fleet

16 new long-haul aircraft – 8 x A330’s and 8 x A350’s – were ordered last year for delivery through to 2020

In June, August and October last year, Iberia was the most punctual airline in the world according to FlightStats with 91% of aircraft departing on time.  This is despite the massive job cuts that IAG managed to negotiate with the unions and which formed the basis of the turnaround.

They even have a modern logo at long last!

Iberia still has some way to go, of course.  In the first nine months of 2014, budget sister airline Vueling was almost as profitable – €140m vs €162m – despite being smaller, and British Airways made €607m.  You can see why, even now, giving Iberia 45% of the merged business was over the top.

New Iberia routes to Manchester and Edinburgh will be launched this year.  With Iberia redemptions now SUBSTANTIALLY better value than BA redemptions under the new Avios structure, we may all find ourselves spending more time in Madrid.

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How to earn Avios from UK credit cards (July 2025)

As a reminder, there are various ways of earning Avios points from UK credit cards.  Many cards also have generous sign-up bonuses!

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus Mastercard

Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios Mastercard

Get 5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review

There are two official British Airways American Express cards with attractive sign-up bonuses:

British Airways American Express Premium Plus Card

30,000 Avios and the famous annual Companion Voucher voucher Read our full review

British Airways American Express Credit Card

5,000 Avios for signing up and an Economy 2-4-1 voucher for spending £15,000 Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points. These points convert at 1:1 into Avios.

American Express Preferred Rewards Gold Credit Card

Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express

50,000 bonus points and great travel benefits – for a large fee Read our full review

Run your own business?

We recommend Capital on Tap for limited companies. You earn points worth 0.8 Avios per £1 on the FREE standard card and 1 Avios per £1 on the Pro card. Capital on Tap cards also have no FX fees.

Capital on Tap Visa

NO annual fee, NO FX fees and points worth 0.8 Avios per £1 Read our full review

Capital on Tap Pro Visa

10,500 points (=10,500 Avios) plus good benefits Read our full review

There is also a British Airways American Express card for small businesses:

British Airways American Express Accelerating Business Card

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.

The American Express Business Platinum Card

50,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review

The American Express Business Gold Card

20,000 points sign-up bonus and FREE for a year Read our full review

Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.