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BA owner IAG beats profit expectations in third quarter
[LONDON] 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 1.46 billion euros (S$2.34 billion), ahead of a company-compiled analyst consensus of 1.4 billion euros.
The airline group, which also owns Iberia, Aer Lingus and Vueling, said it expected operating profit for the full year to be 3 billion euros 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."