IAG Reports 15.4% Profit Increase in Q3

International Airlines Group (IAG), which owns British Airways and Aer Lingus, reported a significant operating profit of €2 billion for the third quarter, marking a 15.4% increase from the previous year, driven by strong travel demand and effective cost control. Total revenues rose to €9.3 billion, exceeding analysts' expectations, with a notable boost in passenger revenue per available seat kilometer. Despite challenges faced by Aer Lingus due to a pilots' strike, IAG's overall performance remains robust, with a planned share buyback of €350 million reflecting confidence in its strategy. CEO Luis Gallego indicated that the company expects continued strong financial performance into the final quarter of 2024, with a projected capacity growth of approximately 5%. Additionally, fuel costs have decreased by 4.2%, contributing to improved margins. Overall, IAG's results contrast positively with competitors in Europe, who have struggled to replicate last summer's record earnings.