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flag IAG's profits fell 2.1% despite a 2% earnings rise, due to weak US leisure demand and European pricing pressure.

flag IAG, owner of British Airways and other airlines, reported a 2.0% earnings increase to €2.05 billion but a 2.1% decline in pre-tax profits to €1.87 billion for the third quarter. flag Despite a 2.4% rise in capacity and a 2.4% drop in passenger revenue, the company cited soft US leisure demand and European pricing pressures from competition, particularly from British Airways. flag CEO Luis Gallego called the results strong, noting resilient core market demand and gradual improvement in Europe, while reaffirming its 2025 outlook and plans for shareholder returns.

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