British Airways-owner IAG third-quarter profit inline with expectations

[LONDON] British Airways-owner IAG on Friday (Nov 7) reported a slight increase in operating profit for the third quarter, largely in line with estimates, but highlighted continuing weakness in its US point-of-sale economy cabin offering.

It is the latest airline to signal a slowdown in the crucial transatlantic market as travel from Europe to the United States has dropped since US President Donald Trump, whose policies are perceived by many abroad as anti-foreigner and anti-trade, took office.

The group, which also owns Iberia, Vueling and Aer Lingus, said its passenger load factor – a key measure of performance – fell in all regions, with the most pronounced being a 2.4-point drop on lucrative North Atlantic routes.

Its profit for the three-month period ended September 30 was 2.05 billion euros (S$3.08 billion), up 2 per cent from a year earlier and on par with a company-compiled consensus estimate of 2.1 billion euros. REUTERS