South, IAG’s handling subsidiary, declares losses of 98 million in its first year due to the costs of the ERE
South Europe Ground Services, the company belonging to IAG that emerged last May 2024 as a spin-off of the handling (ground handling services) of Iberia, begins its journey in the records with a balance eclipsed by the ERE agreed with the unions that affected 1,442 workers after the loss of licenses to provide ground handling services. handling to third parties in eight Spanish airports. To undertake this restructuring, armed with 1,315 early retirements and 127 incentivized dismissals, the company provided 156.6 million of euros that brought the net result of 2024 to about red numbers of 98 million.
“As of December 31, 2024, the company has recorded a provision in the amount of 156.6 million corresponding to the best estimate at that date of the disbursements necessary to cancel the obligation related to the aforementioned ERE,” argues the KPMG audit that accompanies the accounts deposited in the Commercial Registry by the firm that provides security services. handling IAG airlines (Iberia, Iberia Express, Vueling, Level, British Airways, Air Nostrum and Aer Lingus). On them it reflects a negative operating result (Ebit) of 133 million, despite the fact that the ordinary activity of the business continues to be profitable and records profits of 27 million without including the restructuring plan.
According to its latest forecasts, the adjustment plan began to be executed at the beginning of the year with the estimate of closing in 2025. with most of the departures already materializedas contemplated in the calendar agreed with the workers’ representatives. Currently, the company has an average workforce of 7,000 employees, concentrated mainly in Madrid – which brings together half of the team – and Barcelona, where more than 1,500 people work. The rest of the staff is divided proportionally to the volume of service among the remaining 36 airports.
Although South was legally born in February 2024 under the name Minotaur Ground Services, it was not until May when it acquired its current entity as an operating company. On that date, Iberia formalized the segregation of its entire transportation unit. handlingthrough which the new subsidiary received assets valued at 113.3 million euros and liabilities of 89.6 million. Later, during the exercise, Iberia also approved a monetary contribution of 85 million eurosalready disbursed at the end of the year, which significantly reinforced the company’s own funds and financial position in its first year of life.
On an operational level, in addition to the airlines of the Spanish-British group, South provided service to more than 100 companies last year. In more detail, it offered ramp assistance operations to more than 355,000 flights and served more than 105 million passengers, managing more than 52 million suitcases in the 38 Spanish airports in its network. This activity led him to sign up revenue of 486 million at the end of its first year as an independent company from Iberia. Added to this item are other operating income of 27.6 million, mainly driven by cargo terminal services.
The bulk of this turnover is concentrated among its main clients: the airlines of the Iberia Group (Iberia and Iberia Express) and Vueling. However, the pie will be increasingly distributed after adding airlines such as Sichuan Airlines, Jet2holidays, Silkway, Láser, Jetblue or MGA Airline, among others, to its network, which already coexist in a portfolio of almost 158 airlines, according to data provided in the summer. Then, the company handling I already boasted of achieving 35% market share in its first year of operationsthus covering the objective established for the first phase of its strategic plan that covers the period 2024-2030.
