International Airlines Group (IAG) said pre-tax profits climbed 22% to \u20ac1.44bn in the three months to the end of September thanks to strong travel demand and lower costs.<\/span><\/p>\n Revenues rose 2% to \u20ac6.6bn and the group, which also owns Aer Lingus, <\/span>Iberia and Vueling, <\/span>penciled in an 18% rise in underlying operating profit for the full year.<\/span><\/p>\n But shares fell 7% – having reached a record high earlier this week – as a key measure, revenue growth per seat, slowed to 0.7%, down from 1.5% in the second quarter. IAG’s stock has already risen by nearly 50% this year.<\/span><\/p>\n Chief executive Willie Walsh said all IAG’s businesses performed well, with passenger revenue growth buoyed by upturns in Spanish and Latin American markets.<\/span><\/p>\n “Our commercial performance was good despite underlying disruption from severe weather and terrorism,” he said.<\/span><\/p>\n The results come during a tough time for the airline sector – following the collapse of Monarch, Air Berlin and Alitalia amid tough competition. But <\/span>Mr. Walsh said consolidation was good for the industry and consumers and left opportunities for more efficient players such as IAG.<\/span><\/p>\n He said: “IAG will continue to grow organically, and we’ve demonstrated we can do that efficiently.” Mr. Walsh flagged growth opportunities that Vueling might now have in Italy and Germany. He also confirmed IAG’s interest in acquiring Monarch’s airport slots at Gatwick.<\/span><\/p>\n IAG re-confirmed a \u20ac65m hit as it paid out compensation following a power failure that caused severe disruption at British Airways over the May bank holiday weekend.<\/span><\/p>\n