IAG upbeat on rest of year after lifting third-quarter profit

IAG expects its strong financial performance to continue in the last quarter of the year after lifting operating profit 15% in the third quarter to over €2 billion ($2.15 billion).

The improved profit was achieved on revenues increased almost 8% to €9.33 billion in the three months ending 30 September, while net profit was 17% higher at €1.43 billion.

The group cites a strong demand in its core markets, supporting a 1% increase in passenger unit revenue.

British Airways led profitability within the group, posting an operating profit before exceptional items of £830 million ($1.07 billion) – an increase of £251 million. Iberia and Vueling profits were up slightly to €454 million and €292 million respectively.

Aer Lingus, which was hit by strike action during the summer, was the only IAG airline unit where profits slipped in the quarter. The Irish carrier’s profit of €139 million was down €57 million.

IAG chief executive Luis Gallego says  “We are delivering on our commitment to provide sustainable returns for shareholders. Demand remains strong across our airlines and we expect a good final quarter of 2024 financially.”