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Weak demand for economy class seats on transatlantic flights hit profits at British Airways owner IAG during the key summer holiday months.
For the July to September period, the airline’s pre-tax profits fell 2.1 per cent, compared with last year, to €1.87bn, while revenues were flat at €9.3bn. Last year the group posted record results on both measures.
Passenger revenue per available seat, a key industry metric, on the group’s north Atlantic routes fell 7 per cent.
The transatlantic market, which has been dented by increased wariness about travelling to the US, is IAG’s most lucrative route. During the three months it expanded capacity in BA, Iberia and Aer Lingus flights to the region.
IAG stressed that overall demand for global travel remained “strong”.
Group chief executive Luis Gallego said: “As expected the north Atlantic market saw some softness [in the US] and unit prices across our airlines were lower in the European market.”