IAG sees profit jump 18% in 2017

British Airways owner IAG SA is targeting an 18 per cent jump in operating profit this year after third-quarter earnings were boosted by improved pricing on US and Asian routes and short-haul operations benefited from European competitors’ woes.

Full-year earnings excluding one-time items and shifts in fuel costs and exchange rates will total ₣3 billion (Dh12.7 billion), Londonbased IAG said on Friday, compared with the ₣2.54 billion posted in 2016. Thirdquarter operating profit increased to ₣1.46 billion from ₣1.21 billion a year earlier, in line with the ₣1.45 billionaverage of analyst estimates.

Fares at European carriers are improving after price cutting encouraged by declining fuel costs drove weaker companies including Alitalia, airberlin and the UK’s Monarch Airlines into insolvency this year. IAG has benefited additionally as Europe’s biggest discounter, Ryanair, cancelled thousands of flights amid scheduling snags and labour spats.