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| British Airways owner IAG upgrades profit forecast | British Airways owner IAG upgrades profit forecast |
| (about 3 hours later) | |
| The parent company of British Airways, IAG, has upgraded its profit forecast after it reported a 30% rise in third quarter profits. | The parent company of British Airways, IAG, has upgraded its profit forecast after it reported a 30% rise in third quarter profits. |
| Operating profits at IAG rose to €900m (£708m) in the three months to 30 September, up from €690m a year ago. | Operating profits at IAG rose to €900m (£708m) in the three months to 30 September, up from €690m a year ago. |
| IAG added that it expected an improvement in annual operating profits of €550m-€600m, compared with previous guidance of a rise of at least €500m. | IAG added that it expected an improvement in annual operating profits of €550m-€600m, compared with previous guidance of a rise of at least €500m. |
| IN addition to BA, IAG also owns the Spanish airlines Iberia and Vueling. | IN addition to BA, IAG also owns the Spanish airlines Iberia and Vueling. |
| IAG chief executive Willie Walsh, 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." | IAG chief executive Willie Walsh, 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." |
| Operating profits at British Airways rose to €607m from €477m a year earlier. Profits at Iberia - which has been undergoing a big restructuring - rose to €162m from €74m last year. | |
| The strong results from IAG contrast with results from Air France-KLM and Lufthansa released earlier this week. | |
| On Thursday, Lufthansa cut its operating profit guidance for 2015, citing concerns about a global economic slowdown and "fierce competition" over fares. | |
| The previous day, Air France-KLM said that last month's pilots' strike had cost it €416m in lost revenues, and reported third-quarter operating profits of €247m, down from €641m a year earlier. | |
| "IAG management has today increased pressure on its European rivals, upping its full year profit forecast," said Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers. | |
| "Cost reduction at the company remains central. More fuel efficient aircraft are playing their part, with restructuring initiatives and resulting increased staff productivity at Iberia again contributing." |