British Airways owner IAG third-quarter profit soars to £1.2bn

IAG, which also owns Iberia, Aer Lingus and Vueling, said third-quarter profit rose 20.7 per cent

IAG said it expects full year profits to be €3bn (Getty)

British Airways owner IAG reported better-than-expected quarterly profit on Friday, after an improved performance in Spain and Latin America helped to boost its income from passengers.

IAG said third-quarter operating profit before exceptional items rose 20.7 per cent to €1.46bn (£1.2bn), ahead of a company-compiled analyst consensus of €1.4bn.

The airline group, which also owns Iberia, Aer Lingus and Vueling, said it expected operating profit for the full year to be €3bn before exceptional items.

IAG’s robust performance comes in a tumultuous year for airlines. Air Berlin, Alitalia and Monarch have all become insolvent, while budget carrier Ryanair was forced to cancel flights due to a pilot rostering fiasco.

“All our companies performed well,” chief executive Willie Walsh said in a statement. “Passenger unit revenue was up 2.2 per cent at constant currency boosted by improvements in the Spanish and Latin American markets.”

“Our commercial performance was good despite underlying disruption from severe weather and terrorism.”

Reuters