IAG third quarter profit soars as Iberia improves

International Airlines Group said third quarter profit more than doubled as its Spanish carrier Iberia started to show signs of recovery, adding to another strong performance from British Airways. IAG, the parent of BA and Spanish carriers Iberia and Vueling, on Friday reported an operating profit of 690 million euros ($923.40 million) in the three months blog to end-Sept, compared to a profit of 270 million in the same period a year ago. IAG was expected to report a third quarter operating profit, before exceptional items, of 600 million euros, according to a company-supplied consensus forecast. Third quarter revenues rose 6.9 percent to 5.4 billion euros. Including the third quarter, the airline group made an operating profit of 657 million euros in the first nine months of 2013. It expects to report a full-year operating profit of around 740 million euros, said chief executive Willie Walsh. The airline said the benefits of restructuring at Iberia were beginning to bear fruit with third quarter profit at the carrier rising to 74 million euros from 1 million in the same period a year ago at the Spanish carrier. BA made a third quarter operating profit of 477 million euros, up from 268 million a year ago.