A British Airways plane at Heathrow Airport. The airline's revenue grew by 20 per cent in the third quarter. PA Images
A British Airways plane at Heathrow Airport. The airline's revenue grew by 20 per cent in the third quarter. PA Images
A British Airways plane at Heathrow Airport. The airline's revenue grew by 20 per cent in the third quarter. PA Images
A British Airways plane at Heathrow Airport. The airline's revenue grew by 20 per cent in the third quarter. PA Images

British Airways owner lands record third-quarter profit


Matthew Davies
  • English
  • Arabic

The owner of British Airways, Irish airline Aer Lingus and Spanish carrier Iberia has landed a record third-quarter operating profit, thanks to a bumper summer.

International Airlines Group made an operating profit of €1.7 billion ($1.79 billion) in its third quarter, up 43 per cent on the same period last year.

That translated into an after-tax profit number of €1.23 billion in the third quarter, a 44 per cent rise on last year.

Total revenue increased across all of IAG's airlines in the third quarter, with British Airways, Aer Lingus and Iberia growing at 20 per cent, 16 per cent and 19 per cent, respectively.

Luis Gallego, chief executive officer of International Airlines Group. Bloomberg
Luis Gallego, chief executive officer of International Airlines Group. Bloomberg

Stronger balance sheet

There was a significant strengthening of the balance sheet as IAG reduced its gross debt by €2.4 billion to €17.2 billion by the end of September this year

Bookings for the fourth quarter are as expected, IAG said, and 2023 is predicted to be year of “strong recovery” for the company, as it flies back towards pre-coronavirus capacity levels.

“This quarter represents a record third-quarter performance for IAG,” said IAG chief executive Luis Gallego.

“This is allowing us to invest in the business and reduce a significant amount of our debt.

“During the third quarter, we saw sustained strong demand across all our routes, in particular the North and South Atlantic and in all leisure destinations around Europe.

“We continue to develop our hubs of Barcelona, Dublin, London and Madrid, supported by our fleet deliveries and future orders.”

Mr Gallego noted that it was too early to tell if the business would be affected by the Israel-Hamas conflict.

The rise in the price of oil had caused some concern among airline analysts, but IAG's chief financial officer Nicholas Cadbury said the company was “well-hedged on jet fuel into Q1 [the first quarter] and Q2 [second quarter] of next year”.

Analysts felt much of IAG's strong performance was down to customers continuing to spend money on travel experiences, despite the rise in the cost of borrowing in the major economies.

But with interest rates set to be higher for longer, how long that spending continues is a matter for debate.

“A pivot has taken place in the travel sector since the pandemic, in terms of its importance to consumers, but that doesn’t mean we aren’t going to see knocks to performance – especially for the long-haul carriers like IAG,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

“Further information on how next year’s summer bookings are shaping up will be the most important barometer in understanding how far the current round of consumer confidence can carry this aviation giant.”

MATCH INFO

Liverpool 2 (Van Dijk 18', 24')

Brighton 1 (Dunk 79')

Red card: Alisson (Liverpool)

Chef Nobu's advice for eating sushi

“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
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Fifa Club World Cup quarter-final

Esperance de Tunis 0
Al Ain 3
(Ahmed 02’, El Shahat 17’, Al Ahbabi 60’)

Company%20Profile
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Match info

Manchester United 1 (Van de Beek 80') Crystal Palace 3 (Townsend 7', Zaha pen 74' & 85')

Man of the match Wilfried Zaha (Crystal Palace)

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

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Price: From Dh590,000

MO
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How to register as a donor

1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention

2) There are about 11,000 patients in the country in need of organ transplants

3) People must be over 21. Emiratis and residents can register. 

4) The campaign uses the hashtag  #donate_hope

Porsche Macan T: The Specs

Engine: 2.0-litre 4-cyl turbo 

Power: 265hp from 5,000-6,500rpm 

Torque: 400Nm from 1,800-4,500rpm 

Transmission: 7-speed dual-clutch auto 

Speed: 0-100kph in 6.2sec 

Top speed: 232kph 

Fuel consumption: 10.7L/100km 

On sale: May or June 

Price: From Dh259,900  

While you're here
The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet

GOLF’S RAHMBO

- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
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- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)

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Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says. 

Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier. 

How to improve Arabic reading in early years

One 45-minute class per week in Standard Arabic is not sufficient

The goal should be for grade 1 and 2 students to become fluent readers

Subjects like technology, social studies, science can be taught in later grades

Grade 1 curricula should include oral instruction in Standard Arabic

First graders must regularly practice individual letters and combinations

Time should be slotted in class to read longer passages in early grades

Improve the appearance of textbooks

Revision of curriculum should be undertaken as per research findings

Conjugations of most common verb forms should be taught

Systematic learning of Standard Arabic grammar

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

CREW
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Updated: October 27, 2023, 7:50 AM`