British Airways owner IAG, which still seems interested in buying Norwegian, reports an unexpected increase in profits for the third quarter. IAG shares are rising.
More and more well-filled flights and price increases are boosting profits.
”Take out the impact of higher fuel prices and adverse currency effects and it becomes clear that IAG is doing a pretty impressive job in terms of improving the underlying business,” says George Salmon, an analyst at research house Hargreaves Lansdown.
Operating profit excluding one-off items rose to 1.46 billion euros, from 1.45 billion a year earlier. Analysts had on average expected a profit decline to 1.43 billion euros.
IAG tried in vain to acquire its Norwegian competitor Norwegian this spring, but the purchase fell through. IAG did, however, buy shares that are now worth just under 400 million Norwegian kroner, making it Norwegian's fourth largest owner.
However, this item will likely be sold by August next year at the latest if there is no deal, according to what IAG CEO Willie Walsh said during his report presentation on Friday, according to Norwegian news agency TDN Direkt.
At 11 a.m. Swedish time, IAG shares were up about 2 percent in London.
Source:TT-Di
