International Consolidated Airlines Group or IAG's (BAY.L,BAIRY.PK,IAG.L) third-quarter pre-tax profit from continuing operations slipped to 221 million euros, from last year's 316 million euros, while excluding exceptional items, it declined to 228 million euros, from 332 million euros in the comparable quarter in 2011.
Quarterly operating profit totaled 263 million euros, down from 351 million euros a year earlier.
However, total revenue was 5.06 billion euros, up 12.6% from 4.49 billion euros in the prior-year quarter.
For the third quarter, IAG's Group traffic, measured in Revenue Passenger Kilometres or RPK, improved 4.9% to 49.34 billion, from 47.02 billion last year. Group capacity, measured in Available Seat Kilometres, for the month was 58.26 billion, up 4.7% from the year-ago period's 55.66 billion. Seat factor for the quarter rose 0.2 points to 84.7%.
Separately, IAG announced a comprehensive plan to save Iberia after record losses and return it to profitability. Iberia's transformation plan would introduce permanent structural change across all business areas with the goal of stemming losses and returning the Spanish airline to profitability.
The plan includes reduction of 4,500 jobs to safeguard nearly 15,500 posts across the airline. Further, the transformation plan aims for turnaround in profitability of at least 600 million euros from 2012 levels to align Iberia with IAG's target return on capital of 12 percent by 2015.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.