British Airways parent incurs $1.2bn loss From:AAP March 01, 2013 6:27AM INTERNATIONAL Airlines Group, parent of British Airways, plunged into an annual net loss of 943 million euros ($A1.2 billion) in 2012 on severe financial strains at its Spanish arm Iberia and owing to a soaring fuel bill. But IAG's share price soared more than 8.0 per cent, easily topping London's benchmark FTSE 100 index in the process, as the market cheered the group's pledge to turn around ailing Iberia. The loss after tax compared with a net profit of 562 million euros in 2011, IAG said in a results statement on Thursday, adding that it had been hit hard by impairment and restructuring charges at Iberia. Revenues grew 10.9 per cent to 18.12 billion euros but the fuel bill rocketed by a fifth to 6.10 billion euros. Before exceptional items, British Airways made an annual operating profit of 347 million euros - but Iberia suffered an operating loss of 351 million euros. "2012 has been a year of transformation for IAG - we bought (no-frills carrier) bmi and integrated it into British Airways and initiated our restructuring of Iberia," said IAG chief executive Willie Walsh. "However there was a significant impact on the results from exceptional and non-operating items... These items include provision for restructuring and impairment costs in Iberia." IAG had earlier this month revealed that it would axe more than 3,800 jobs at Iberia - about 700 fewer than planned. The division has struggled as a result of Spain's weak economic backdrop. "We have embarked on a significant transformation program in Iberia - and these results emphasise further that the airline must adapt to survive," Walsh said on Thursday. "It must stem its cash losses and adjust its cost base permanently if it is to compete with other airlines in all its strategic markets and lay the foundations for profitable growth in the future."