The gains will come from extra revenue and over 2,000 job cuts by the end of 2008, Iberia said in a presentation to analysts. It did not specify which profit figure it was using.
The airline said net profit in the first nine months of the year increased by nearly threefold to 402 million euros, swelled by gains from the sale of part of its stake in travel reservation company Amadeus.
It booked 600 million euros of net gains from the sale, out of which it paid a special dividend of about 285 million euros to shareholders. But earnings before interest and tax fell 23.5 percent to 109 million euros as the firm struggles with high fuel costs.
Chairman Fernando Conte told analysts on Monday that fuel cost forecasts were looking a little more optimistic and added that nearly 70 percent of the airline's fuel costs were hedged.
The company said it would make a provision of 280 million euros this year to fund staff cuts, adding that the costs of the entire staff reduction element of the latest plan would be recouped within 2-1/2 years.