Iberia to launch new feeder airline, cut more costs as it faces full-year loss

Describing the current situation as “unsustainable,” Iberia’s board last week approved a strategic plan that includes creation of a new short/medium-haul carrier, long-haul expansion (mainly to/from Latin America.), an additional €37 million ($55.5 million) annual reduction in overhead costs over the next two years and a “radical” change of approach designed to generate more revenue.