Spain's national carrier Iberia on Wednesday reported a profit of 141m euros ($127m; �90m) for the nine months to September, but warned that it expects to post a loss for the year as a whole.

The company's latest nine-month results, which are 11% down on the same period last year, do not capture the full impact of the 11 September attacks, a spokesman said.

The company also confirmed that it plans to axe 2,561 jobs between now and the end of the year.

Iberia aims to save a total of 160m euros over the next two years through lay-offs and an 11% cut in capacity.

The airline says the restructuring exercise will enable it to post full year profits of 108m euros in 2002.

Analysts say that Iberia's low dependence on transatlantic routes, which have been hit particularly hard by the passenger downturn, makes it more likely to survive the slump.