International Airlines Group (IAG), owners of British Airways are to cut 4,500 jobs in attempt to cut losses from airline Iberia after a loss of over £210 million.

The cuts will include a 15 percent reduction in Iberia’s capacity and the removal of 25 aircraft from the fleet.

The impact of hurricane Sandy has also damaged the company’s profits with flights grounded in and out of the east coast of North America.

Despite poor results and the impact of hurricane Sandy and the difficulties stemming from Iberia, IAG posted profits of £216 million in a busy third quarter.