International Airlines Group, parent of British Airways and Iberia, reported a €485 million full-year 2011 operating profit,

up from €225 million in 2010 on a pro-forma basis. Commenting on the airline group's first year of operations, IAG chief Willie Walsh in a statement noted that revenues grew more than 10 percent on a combined basis, thanks in large part to "good premium traffic growth." The North Atlantic "remains strong" to the benefit of BA, according to Walsh. However, Iberia faces challenges, given "its exposure to financial uncertainty in the eurozone" and "a highly competitive marketplace with no-frills airlines, high-speed rail and growing competition from more efficient long-haul airlines," Walsh noted.