International Airlines Group share price rises on higher profit guidance

 
Emma Haslett
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British Airways owner IAG said it expected profits to rise between €550m and €600m on last year's €770m (Source: IAG)

Shares in International Airlines Group (IAG), the company behind British Airways and Spanish flag carrier Iberia, rose 3.5 per cent in early trading after it raised its full-year profit guidance.

The airline said it expected operating profit before exceptional items to be between €550m and €600m (£432m to £471.5m) higher than 2013's €770m.

IAG said it made operating profits of €162m in the third quarter, more than double last year's €74m, as a major restructuring of Iberia, which has included 3,100 job cuts, began to pay off.

British Airways performed strongly, with profits of €607m, up from €477m during the same period in 2013. At Iberia, the figure rose to €162m from €74m last year.

Willie Walsh, the airline's chief executive, said:

We continued to grow capacity efficiently and both our non-fuel and fuel unit cost performances were strong with the latter boosted by the introduction of new, more efficient aircraft into our fleet.

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