IAG shares soar as FTSE 100 recovers

  • 28 October 2016
  • From the section Business
Market trader (file picture) Image copyright Getty Images

Shares in British Airways owner IAG took off after the airline group released its latest results.

IAG's shares closed up nearly 5% at 433.85p, despite the company - which also owns Iberia - reporting a 4% dip in third-quarter profits.

The group said it had been hit by the weak pound, and also by disruption from air traffic control strikes in France.

However, the results were in line with expectations, and IAG also raised its interim dividend by 10%.

IAG was the top riser in the FTSE 100, with the index recovering from early losses to stand 9.7 points higher at 6,996.26.

RBS shares made a promising start to the day after the release of its third-quarter results, but then quickly lost support and ended down 1.2% at 194p.

The bank reported a third-quarter loss of £469m and confirmed that it would not be able to meet the deadline of selling its Williams & Glyn bank by the end of 2017.

On the currency markets, the pound lost ground after a legal challenge against Brexit was rejected at the High Court in Belfast.

Against the dollar, the pound was down 0.18% for the day at $1.2141, and 0.53% lower against the euro at €1.1104.