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International Consolidated Airlines Group SA on Friday maintained its annual outlook, but shares slumped as the British Airways owner reported ‘softness’ in US travel and weaker prices in the European market. Shares in the company fell 7.4% to 383.60 pence each in London on Friday morning. London-based IAG, which also owns Aer Lingus and Iberia, said pretax profit in the third quarter of 2025 fell 2.1% on-year to €1.87 billion from €1.91 billion. Revenue was flat at €9.33 billion. ‘We delivered a strong performance in the third quarter and remain on track to deliver another year of growth in revenues, profit and shareholder returns,’ Chief Executive Officer Luis Gallego said. Gallego said that with a €1 billion buyback nearing completion, IAG plans to update the market ‘about further shareholder returns’ when it releases annual results in February. ‘We remain focused on long-term value creation for our shareholders, helping to deliver our financial ambitions through disciplined investment for the future to improve customer experience and operational efficiencies,’ the CEO added. IAG said that overall, it had a ‘good performance’ in the third quarter, after a ‘record’ period a year prior. ‘As expected the North Atlantic market saw some softness in US point-of-sale economy leisure and unit prices across our airlines were lower in the European market due to a combination of high growth by British Airways and more competitive markets elsewhere. The South Atlantic and Asia Pacific markets were strong,’ it said. Passenger revenue per available seat kilometre fell 2.4% in the third quarter, with the sharpest decline coming in North America, where it slumped 7.1%. In Europe, it was down 6.0%. In the domestic grouping, which includes Spain and UK, it fell 4.0%. PRASK fell 3.3% in Africa, Middle East & South Asia, rose 0.6% in Latin America & Caribbean and shot up 5.6% in Asia Pacific. Looking ahead, IAG left its annual guidance unchanged and noted revenue is ‘positively booked for the fourth quarter’. ‘We are on track to deliver another year of revenue and earnings growth, margin progress and strong shareholder returns. Demand for travel remains strong. We are well positioned, with a strong business model with great brands and a best-in-class network, whilst being mindful of the macroeconomic and geopolitical backdrop,’ IAG added. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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