INTERNATIONAL Airlines Group (IAG), the merged cargo operations of BA and Iberian, posted a 31 per cent year-on-year decline in third quarter net profit to US$497 million, drawn on revenues of $6.2 billion, which increased 2.2 per cent.

    IAG traffic increased 1.2 per cent though yield declined 0.8 per cent and cargo revenue was flat at $395 million as the Anglo-Spanish carrier's traffic stalled in the face of weakening demand.

    Year-to-date revenue increased 10.6 per cent year on year to $1.2 billion, attributed to a 16.7 per cent surge in the first half when volume was up 5.3 per cent and yields increased 4.9 per cent.

    The company's cargo unit is bracing for a tough fourth quarter as October traffic fell 3.8 per cent from a year earlier and revenue grew just 0.2 per cent. BA's volume was down 5.2 per cent while Iberia's traffic increased by 0.8 per cent, reported Newark's Journal of Commerce.

    Separately, IAG has agreed to buy Lufthansa's British Midland unit subject to due diligence and regulatory approval. It expects to sign a purchase agreement in the coming weeks and close on the deal in the first quarter of 2012.

(Source:http://www.shippingonline.cn/news/newsList.asp?classname=News)