IAG: airline restructuring - FT.com International Airlines Group, product of the 2011 merger between British Airways and Spain's Iberia, seems to have been sitting in the departure lounge forever. Rationale for the tie-up looked good from the start: solid synergies in an industry that could use consolidation. But securing these benefits was always going to be tough, and Europe's economic woes - Spain's malaise, in particular - simply compounded the task. At last, though, take-off seems to be in sight. IAG's second-quarter operating result, announced last week, was almost 50 per cent above consensus forecasts. Better still the numbers showed the Iberia side of IAG accounting for much of the outperformance. Iberia's operating loss dropped to €35m, from over €90m a year earlier, the first positive year-on-year change for almost two years. IAG's long Spanish labour battle has resulted in a compromise deal involving 3,100 job cuts. Some 1,700 employees have left to date, and labour costs across IAG were essentially flat in the latest three months. BA continues to perform well thanks to revenue strength on Atlantic routes; newly-acquired low-cost carrier Vueling is contributing nicely; and fuel costs are moderating. So, with Europe's low-cost carriers generally raising prices, IAG's flight-path finally looks clearer. Its shareholders may even gaze smugly at rival Lufthansa, also in the throes of restructuring. Here, second-quarter earnings, also out on Friday, were a tad disappointing, and pay-off from the overhaul looks set to arrive mainly in 2015. IAG did not offer a new profit guidance ahead of an autumn shareholder meeting. But its chances of hitting its earnings before interest and tax target of €1.6bn in 2015 finally seem credible. IAG shares, admittedly, never lost faith and have doubled in a year to 311p. But, on a multiple of 10 times 2014 consensus earnings, they could yet fly higher.