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British Airways parent IAG SA strengthened its profit forecast for 2015 after third-quarter earnings jumped 39 percent, propelled by rainy summer weather that bolstered U.K. ticket sales and the addition of Ireland’s Aer Lingus Holdings Plc to its stable of airlines.
Operating profit before one-time gains or costs rose to 1.25 billion euros ($1.37 billion) from 900 million euros a year earlier, Europe’s third-largest airline operator said Friday in a statement. Full-year earnings will be in a range of 2.25 billion euros to 2.3 billion euros, compared with a prediction that profit would exceed 2.2 billion euros.
Chief Executive Officer Willie Walsh cajoled the government of his native Ireland in May into backing IAG’s 1.4 billion-euro offer for Aer Lingus, providing a fourth brand for the holding company formed from British Airways’ merger with Madrid-based Iberia in 2011. Earnings growth in the quarter compares with operating profit that tripled at Air France-KLM Group and surged 51 percent at Deutsche Lufthansa AG.
“We’re reporting strong quarter results with a positive contribution from all of our airlines,” Walsh said in the statement. “Aer Lingus is cost-effective and provides a natural gateway to build our business between Europe and North America. It’s a great asset for the group.”
This article was written by Kari Lundgren from Bloomberg and was legally licensed through the NewsCred publisher network.