IAG posts over 12% quarterly profit fall despite rising revenue
Business
British Airways and Iberia's parent company, IAG, just posted a more than 12% drop in profit for the latest quarter, even though its revenue actually went up.
The main reasons? Fuel prices have shot up and ongoing Middle East conflicts have caused flight disruptions.
Still, IAG pulled in €1.23 billion in profit after tax, down from €1.40 billion last year.
Transatlantic premium demand boosts IAG shares
IAG's fuel costs jumped over 30%, with the total bill expected to hit nearly €9 billion this year.
Despite these challenges (and some flight cancelations), CEO Luis Gallego says the company is staying resilient.
Interestingly, demand for transatlantic flights, especially from premium travelers, is helping keep things steady, and even gave its shares a small boost after the announcement.