(Reuters) - Shares in IAG rose nearly 3% to the top of London's benchmark index on Friday, after the British Airways owner scrapped its proposed takeover of Spain's Air Europa citing regulatory hurdles.

IAG posted a second quarter operating profit of 1.24 billion euros ($1.34 billion) beating market expectations driven by popularity of travel in its primary North Atlantic market.

($1 = 0.9258 euros)

(Reporting by Prerna Bedi in Bengaluru; Editing by Mrigank Dhaniwala)