IAG flies higher despite fuel cost rises and currency headwinds

26th Oct 2018 07:13

(Sharecast News) - International Consolidated Airlines Group issued its results for the nine months ended 30 September on Friday, with third quarter operating profit rising to €1.46bn before exceptional items, from a restated €1.45bn year-on-year.The FTSE 100 airline operator, which owns the carriers British Airways, Iberia, Aer Lingus, Vueling and Level, said its net foreign exchange operating profit impact for the quarter was an adverse €111m.Passenger unit revenue for the quarter rose 1.3%, or 2.4% at constant currency, while non-fuel unit costs before exceptional items for the quarter were ahead 0.5%, or down 0.7% at constant currency.Fuel unit costs for the quarter rose 14.3%, or 15.0% at constant currency.IAG's operating profit before exceptional items for the full nine month period was up 7.3% over last year at €2.58bn.Passenger revenue for the nine month period was up 5.3% at €16.33bn, while total revenue was 5.1% higher at €18.35bn.The company also completed its second €500m share buyback programme on 24 October.Its board declared an interim dividend of 14.5 euro cents per share."We're reporting a good third quarter performance with an operating profit of €1.46bn before exceptional items, up from €1.45bn," said IAG's chief executive Willie Walsh."These were strong results despite significant fuel cost and foreign exchange headwinds."We're pleased to announce an interim dividend of 14.5 euro cents per share and this week we completed our second €500m share buy-back programme."