LONDON (AP) — International Airlines Group, which owns British Airways and Iberia, says it is still struggling to integrate the Spanish airline into its operations as it reported a deepening first-quarter net loss of 630 million euros ($827 million) compared to a 129 million euros loss last year.

CEO Willie Walsh says that despite 10 days of industrial action and the weak economic situation in Spain, IAG is adapting — though he acknowledged much more needed to be done.

The company, Europe's third largest by market value, posted an exceptional charge of €311 million in the quarter, principally relating to restructuring at Iberia.

The results come after unions accepted a mediator's proposal reducing the number of planned layoffs to some 15 percent of Iberia's workforce.

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