Yahoo Finance FTSE 100: British Airways owner IAG stock falls, despite posting record Q3 profit
British Airways owner International Consolidated Airlines Group (IAG.L) stock seesawed on Friday morning in London, after it said profit had risen by 56% due to strong demand on both North and South Atlantic routes.
The company said pre-tax profit rose to €1.6bn (about £1.4bn) in the third-quarter — up from €1bn.
This bump was supported by a 17.9% increase in capacity since the same time last year, as investment was focused on European holiday routes over the summer and a cash injection across the North and South Atlantic. It has had 20 new aircraft delivered for the year-to-date.
Meanwhile, the cost of fuel fell 6.2% compared to last year, when the Russia-Ukraine war roiled oil prices on supply concerns. Revenue per passenger rose 2.2%.
Revenue per passenger is up by almost a quarter since 2019.
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“Our strong financial performance is enabling investment in our people and allowing us to further improve customer experience. At the same time, we will keep working towards our sustainability goals," said CEO Luis Gallego.
As far as risks to the business go, it listed supply chain uncertainty for aircrafts, cyber attacks and data security, the macroeconomic and regulatory environment and sustainable aviation among its concerns.
After leading the FTSE 100 (^FTSE) in early trade, its stock headed 1.6% lower.
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