Falling costs boost Q2 profits for IAG airlines group

International Airlines Group, which owns British Airways and Iberia, announced a rise in net profits in the second quarter on Friday thanks to falling costs and fuel bills.

Earnings after taxation rose by 28 percent to 358 million euros ($392 million) in the three months to June.

Operating profit rose by 40 percent to 530 million euros, driven by increases at British Airways and Iberia, although profits at Spanish low-cost airline Vueling fell.

"We continue to take cost out of the business, with both employee and supplier unit costs down at constant currency, and improvements in productivity levels," said IAG chief executive Willie Walsh.

The group also benefited from decreasing fuel prices.

Walsh said IAG was "on track to reach our full year targets" of an operating profit of more than 2.2 billion euros.

IAG is in the process of buying Aer Lingus, after making a bid that values the Irish carrier at 1.4 billion euros.

The takeover has the support of Ryanair and the Irish government, both major shareholders, and the European Commission gave a conditional green light earlier this month.