International Airlines Group, formed last month via the merger of British Airways and Iberia, posted Friday modest 2010 net profits on a pro-forma basis, as if they had been trading as a combined entity.

Earnings after taxation stood at 100 million euros ($138 million) last year, compared with a loss of 777 million euros in 2009, IAG said in a results statement.

The formation of IAG was completed last month, creating Europe's second biggest airline by market value behind Lufthansa of Germany.