BA owner IAG backs outlook as Q3 earnings tick up 2%

(Sharecast News) - British Airways and Iberia owner IAG posted a 2% increase in third-quarter operating profit on Friday as it said demand for travel "remains strong" although there was "some softness" in the North American market. Operating profit rose to €2.05bn from €2.01bn in the same period a year earlier, while pre-tax profit was down 2.1% to €1.87bn.

Total revenue was flat in the third quarter at €9.33bn, missing forecasts for an increase to €9.43bn, while passenger revenue per available seat kilometre was down 2.4%.

The company, which also owns Vueling and Aer Lingus, backed its full-year outlook.

IAG said it had been a good performance overall, on top of a record third quarter in 2024. As expected, the North Atlantic market saw some softness in US point-of-sale economy leisure and unit prices across its airlines were lower in the European market due to high growth by BA and more competitive markets elsewhere.

The South Atlantic and Asia Pacific markets were strong, IAG said.

Chief executive Luis Gallego said: "We delivered a strong performance in the third quarter and remain on track to deliver another year of growth in revenues, profit and shareholder returns. So far this year we have grown our operating profit by 18% and adjusted earnings per share by 27% and increased our interim dividend.

"Having nearly completed a €1 billion share buyback, we intend to update the market about further shareholder returns when we report our 2025 full year results in February. We remain focused on long-term value creation for our shareholders, helping to deliver our financial ambitions through disciplined investment for the future to improve customer experience and operational efficiencies."