The shares of IAG (LSE: IAG) soared 6% to 371p this morning after the owner of British Airways reported a significant uplift in its third-quarter operating profits.
The airlines giant, which also owns the carrier Iberia, revealed a 7% boost in revenues to €5.4bn, while total costs were reduced by around 1.5%. Operating profits of €657m in 2013 to date compare with just €17m this time last year, a significant improvement.
IAG were specific in their outlook for the full-year, stating expectations of €740m operating profits, excluding exceptional items.
Speaking on Iberia’s much-improved performance, chief executive Willie Walsh added:
“Iberia made an operating profit of €74 million in the quarter compared to an operating profit of €1 million last year. This is an improved performance, bearing in mind it’s the strongest quarter of the year. However, the airline must continue to implement its restructuring plan and reach agreement on productivity changes to bring about long term sustainable profits and growth.”
