London - International Airlines Group reported a 30 percent jump in third-quarter profit on Friday and raised its forecast for the year, in contrast to the British Airways-owner's strike-hit rivals.
IAG's operating profit before exceptional items for the three months ended September 30 was 900 million euros (R12 billion), up from 690 million euros a year earlier and beating analyst expectations of 879 million euros.
The company said it now expected to increase this year's operating profit by between 550 million euros and 600 million euros from the 770 million euros it made last year, upping its previous forecast for an increase of at least 500 million euros.
The rise in profit was driven by tight cost control at both IAG's British Airways and Iberia units, IAG said, helped by the introduction of new more fuel-efficient aircraft.
The increased profit outlook from IAG, which also operates Spain-based budget airline Vueling, contrasts with updates from Germany's Lufthansa and Air France-KLM.
Lufthansa on Thursday lowered its profit guidance for 2015 for the second time this year due to a stuttering global economy and increased competition.
Air France said on Wednesday that a costly strike and a dip in fourth-quarter demand would shave 500 million euros off its 2014 core earnings.
Both Lufthansa and Air France are under pressure to expand their low-cost operations and reduce costs to compete better with budget carriers such as easyJet.
By contrast, IAG benefits from operating Vueling, which contributed 140 million euros to group operating profit in the third quarter.
Shares in IAG, Europe's biggest airline by market capitalisation, have outperformed over the last three months, posting a 16 percent gain against a 20 percent fall in Lufthansa's stock and a 22 percent drop in Air France's shares. - Reuters