By Daniel Hunter

British Airways' owner IAG has returned to profit for the first half of 2014 thanks to its Spanish airline, Iberia.

IAG reported a profit of €155m ($207m, £123m) in the first six months of the year, up from a €177m loss in the same period last year.

The Spanish airline Iberia has been making large losses for several years, made a loss of €95m in the period which was a much better performance than in previous years.

IAG chief executive Willie Walsh said: "This performance shows that we are making further solid progress."

Mr Walsh said that last week, Iberia agreed to cut almost 1,500 jobs.

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