Image: British Airways, International Airlines Group Image: British Airways, International Airlines Group

The owner of British Airways has reported a 48% rise in profits for the third quarter, prompting it to raise its full-year forecast.

International Airlines Group (IAG), which owns British Airways, Iberia, Vueling and Aer Lingus, posted profits of €1.1 billion ($1.2bn; £792m) for the three months to the end of September.

The group now says its profits for the full-year would be be between €2.25bn and €2.3bn, up slightly from its initial estimate of €2.2bn.

Chief executive Willie Walsh said: "We're reporting strong quarter results with a positive contribution from all of our airlines."

IAG also said that it would issue its first dividend at 10 euro cents per share. IAG is yet to issue a dividend since British Airways and Iberia merged in 2011.