BA owner International Airlines Group reports increased profit and revenue

 
Caitlin Morrison
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IAG owns British Airways and Aer Lingus (Source: Getty)

BA owner International Consolidated Airlines Group (IAG) grew profit and revenue in the third quarter of the year, despite increased pressure due to terrorism and extreme weather events.

The figures

Passenger revenue inched up by 0.8 per cent to €15.5bn (£13.7bn) from €15.4bn, while total revenue was up 1.3 per cent at €17.5bn from €17.3bn.

Operating profit before exceptional items rose 26.9 per cent to €2.43bn from €1.92bn.

Profit after tax rose 5.6 per cent to €1.57bn from €1.48bn.

Why it's interesting

IAG has weathered a number of storms this year, both literal and figurative. In May, British Airways was thrown into turmoil when a massive IT failure led to thousands of flights being cancelled.

In today's results, the company highlighted recent weather events - such as the spate of hurricanes that rocked the US and the Caribbean over the summer - and terror attacks in recent months as creating "underlying disruption".

Although the group grew profits in spite of these setbacks, investors were not overly impressed, and shares in IAG were down more than three per cent at the time of writing.

What IAG said

Chief executive Willie Walsh hailed "another strong quarter", and said: "All our companies performed well. 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. IAG Cargo improved in the quarter due to stronger Asia Pacific demand compared to last year."

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