BRITISH AIRWAYS Parent company issues profit warning on £121m strike hit

0

The parent firm of British Airways has issued a profit warning on the back of costly strikes at the airline and weaker bookings.

International Airlines Group (IAG) said the 48-hour action by pilots earlier this month, which forced the airline to scrap almost all its flights over the two days, cost it an estimated €137m (£121m).

It also pointed to a €33m (£29.2m) cost from further passenger disruption as a result of threatened strikes by staff at Heathrow Airport.

Another cost headwind, IAG said, was from weaker booking trends in its budget Vueling and LEVEL operations, with an expected impact of €45m (£40m).

It released the update on its guidance during a period of severe turbulence for the wider airline and holiday sector in the week that saw Thomas Cook crash with the loss of thousands of jobs.

Share.
Positive SSL