Aug 1 (Reuters) - British Airways owner IAG

reported better than expected second-quarter earnings on Friday,

helped by strong demand for its transatlantic routes despite

fears of knock-on effects from U.S. President Donald Trump's

tariff war.

Europe's airlines have broadly managed to dodge turmoil over

tariffs, with Air France-KLM and Lufthansa

reporting strong second quarters and confirming their annual

forecasts this week.

IAG reported operating profit of 1.68 billion euros ($1.92

billion) for the quarter, compared with analysts' average

forecast of 1.4 billion euros in an LSEG poll and up 35% from a

1.2 billion euro profit in the same period last year.

"We continue to benefit from the trend of a structural shift

in consumer spending towards travel. We remain focused on our

market-leading brands and core geographies, where we continue to

see robust performance," Chief Executive Luis Gallego said in a

statement.

The group confirmed its full-year financial forecasts and

said it was seeing strong demand in its core North Atlantic

markets, as well as Latin America and Europe.

While Gallego acknowledged volatility in the U.S. economic

situation, he said any weakness was mitigated by strengths in

other parts of the business.

"The U.S. point-of-sale economy cabin is still weak but it's

offset by the strong premium cabin we have ... but it has been

improving in the past few weeks," Gallego told reporters on a

media call.

U.S. airlines have not fared as well, with Delta

pulling its full-year guidance this spring over worries about

declining demand.

Growth in the Latin American market has also continued to

boost the business, Gallego added.

IAG shares have been among the strongest performers among

European airlines in recent years, but this year it has slightly

lagged rivals Lufthansa and Air France-KLM as they have

recovered from cost pressures.

($1 = 0.8749 euros)

(Reporting by Joanna Plucinska and Shashwat Awasthi

Editing by Mark Potter and David Goodman

)