British Airways owner IAG's profits dented by weak pound

Airline group IAG, the owner of British Airways and Iberia, says the weak pound cost it €162m (£145m) in the third quarter of the year.

Operating profits in the July to September quarter fell 4% to €1.2bn.

The airline said it expects operating profits for the full year to be up by about 7%, a lower rate than the one it forecast in July.

There was a raft of cost increases, including employee costs up by 1.6%, and handling and catering up 7.5%.

The company said the increase reflected additional compensation fees and baggage claims related to operational disruptions, including air traffic control strikes in France. 

Willie Walsh, IAG's chief executive, said the quarterly performance had been a "strong" one.

However, he added that the results had been affected by the "tough operating environment", including the impact of the weak pound and disruption from strikes.