IAG operating profit jumps 21% in third quarter as fuel costs drop

British Airways and Iberia parent International Consolidated Airlines Group reported a 20.7% jump in third-quarter operating profit on Friday, helped along by lower fuel costs.

For the three months to the end of September, operating profit rose to €1.46bn as revenue grew 2% to €6.6bn. Meanwhile, pre-tax profit rose 22.5% to €1.4bn as fuel, oil costs and emissions charges declined 6.7% to €1.2bn.

The company, which also owns Vueling and Aer Lingus, said operating profit for the full year should come in at around €3bn before exceptional items.

IAG said it will pay an interim dividend of €12.5 per share, up 13% on the year.

Chief executive officer Willie Walsh said: "All our companies performed well. Passenger unit revenue was up 2.2% 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. IAG Cargo improved in the quarter due to stronger Asia Pacific demand compared to last year."

At 0810 BST, the shares were down 3.1% to 649p.