IAG earnings fall 34% in 3Q2011, but full-year bullish outlook retained

International Consolidated Airlines Group (IAG), the owner of oneworld members British Airways and Iberia, reported a 33.5% year-on-year fall in operating profit due largely to fuel price increases in the quarter. Despite elevated fuel prices, which are not expected to relent, and deteriorating economic outlooks for Europe and the UK, IAG stands out amongst European carriers as having the most bullish outlook for the full-year. This reflects competitive advantages that accrue to IAG, namely, its exposure to the lucrative and hitherto resilient long-haul market from London.