Iberia Implements Service Fee

Iberia will begin implementing a service fee of USD 20.00 for each
passenger that elects paper ticket on itineraries where electronic ticket
(Cyberticket) is available. This policy will be effective as of January
15, 2004 and applies to tickets issued in the USA only.

With the implementation of this fee, Iberia aligns its commercial policy
in the USA to those already in the marketplace, and expects to encourage a
wider usage of its “Cybertickets.” Iberia has recently expanded
“Cyberticket” availability when booking flights to Mexico, Guatemala,
Costa Rica, Panama, Nicaragua, Honduras, Peru, El Salvador and Greece.
Electronic tickets are already available for all domestic Spain Iberia
flights (except the walk-on Madrid-Barcelona shuttle) and for flights to
and from Germany, Portugal, Italy, The United Kingdom, Belgium, the
Netherlands, Austria, France, Denmark, the United States, Puerto Rico,
Argentina, the Dominican Republic, Chile, Brazil, Sweden, Colombia and

Travel agencies must collect this fee on a Miscellaneous Charge Order
(MCO). The ticket number must be reflected in the “issued in connection
with” box of the MCO.

Iberia is not only Spain`s leading airline, but also the leader in Europe-
Latin America routes. With revenues in 2002 of euro 4.7 billion, net
earnings of euro 160 million and operating earnings of euro 249 million,
it is today Europe`s most profitable scheduled airline. It is also one of
Spain`s most socially committed companies, contributing to the integration
of the handicapped and to projects in the Third World. Along with its
franchise carrier, Iberia Regional, it makes about 1000 daily flights to a
hundred destinations. In 2002, the 75th anniversary of its founding,
Iberia flew some 28 million passengers. Iberia is a member of the oneworld
Alliance, along with Aer Lingus, American Airlines, British Airways,
Cathay Pacific, Finnair, LanChile and Qantas.