British Airways-owner beats Q1 forecasts, slows future capacity plans

LONDON, April 29 (Reuters) - British Airways-owner International Airlines Group reported a forecast-beating rise in first-quarter profit, but said that it would moderate its capacity expansion in the short term in response to weaker overall demand.

Sticking by its forecast for 2016 profit, IAG, whose portfolio also includes Iberia, Vueling and Aer Lingus, said that trading was affected by the aftermath of the Brussels terrorist attacks and by some softness in demand for business-class travel.

For the three months ended March 31, IAG posted operating profit of 155 million euros, beating a consensus forecast of 145 million euros, due to lower fuel prices and its ongoing plan to reduce costs. That compared to the 25 million euros operating profit it posted in the year-earlier period. (Reporting by Sarah Young; editing by Kate Holton)