** British Airways owner IAG hits 4-1/2 month highsas hikes FY profit forecast after posting jump in Q3 profit.
** Rise in profit driven by tight cost control at co'sBritish Airways and Iberia units helped by introduction of newmore fuel-efficient aircraft.
** Stock up 3.8 pct, top riser on 1.2 pct firmer FTSE 100, extends gains since mid-Oct lows to 28 pct.
** Weaker crude oil provided respite to IAG, recently caughtup in a global sell-off in travel-related stocks on Ebola fears.
** IAG's rosier outlook contrasts with updates this weekfrom Germany's Lufthansa and Air France-KLM.
** Pair under pressure to expand low-cost operations &reduce costs to compete better with budget carriers; IAGbenefits from operating Spain-based budget airline Vueling.
** Strength seen sector-wide though IAG outperforms; AirFrance-KLM up 2 pct, easyJet 1.2 pct firmer, &Deutsche Lufthansa & Air France, both down on theweek, up 0.7 pct & 1.7 pct respectively. (RM: tricia.wright1.thomsonreuters.com@reuters.net)