IAG operating profit at 68 million in Q1, compared to 9 million last year
CEO says IAG could scrap Air Europa bid, not at that point yet
Shares up 1.4 in early trading
European airlines hope for record summer demand

LONDON, May 10 Reuters British Airways owner IAG reported a surge in first quarter earnings on Friday helped by rising demand over the Easter holiday and said it was seeing strong summer bookings.

Chief Executive Luis Gallego said the group, which also owns Iberia, Aer Lingus and Vueling airlines, had already secured more than 80 of projected bookings for the second quarter and over 40 for the third quarter.

IAG39;s exposure to the Middle East was very small so it hadn39;t seen a big impact from the conflict there, he said.

Shares in IAG rose 1.4 by 0815 GMT after the group said operating profit totalled 68 million euros 73 million in JanuaryMarch.

That topped analysts39; forecasts of 49 million euros, according to a companycompiled consensus, and compared with a profit of just 9 million euros in the same quarter of last year.

Our transformation initiatives and increased demand, including over the Easter holidays, have delivered another very good set of results with improvement to both revenue and operating profit, Gallego said in a statement.

The first quarter is often weak for airlines, with fewer bookings at the start of the year.

Investors said IAG39;s first quarter performance showed the strength of its longhaul traffic and its success in…