The newly formed International Airlines Group improved its profits by 110% in the final quarter of 2010.
The parent company to the recently merged British Airways and Iberia made a profit before tax of €21 million between October and December last year.
In the same quarter in 2009, the airline made a combined of €208 million.
Willie Walsh, IAG’s CEO, said the combined group figures show a return to profitability.
He said the airlines had seen a “good revenue performance based on strong yields and a small capacity increase”.
The profits would have been higher had it not been for severe weather in the UK and the Spanish air traffic controllers’ strike, which IAG said reduced revenue by €71 million.
Antonio Vazquez, IAG’s chairman, said the IAG airlines had returned to profit “despite a number of significant external events”.
Looking forward, he said he was positive: “We are confident that we are on track to deliver our synergy targets.”
IAG has said it hopes to generate €400m in synergies after five years of working together.