Spanish airline Iberia has posted a narrower than expected first-quarter operating loss of 75.5 million euros.
It credited more stable passenger revenues, the cutting of unprofitable routes and a 21 percent fall in fuel costs.
The net loss was 52 million euros, down from 93 million a year earlier.
The airline was less affected than others by the ash cloud airspace closures.
Iberia is merging with British Airways to better cope with the industry downturn.