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British Airways Owner IAG Posts Record Profit as Fares Rally

  • First-quarter earnings up almost 10%, aided by cost cuts
  • Company joins Air France-KLM in optimism over pricing
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British Airways-owner IAG SA posted record first-quarter earnings as expenses fell and joined Air France-KLM Group in signaling that increased demand from business travelers is poised to boost prices.

Operating profit before one-time items rose 9.7 percent to 170 million euros ($187 million), aided by lower labor and fuel costs, IAG said Friday. A slide in fares slowed, paving the way for what should be the first gain in three years in the second quarter and propelling the group toward higher full year earnings.