IAG third-quarter profits stumble after BA pilot strikes
British Airways and Iberia owner International Airlines Group on Thursday reported a drop in third-quarter profit after taking a knock from BA pilot strikes.
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The FTSE 100 company booked an operating profit of €1.43bn before exceptional items for the third quarter, 7% below the same period last year, as operations expenditure increased by 5% to €5.89bn on the back of higher engineering, handling and catering costs.
Meanwhile, fuel, oil costs and emissions charges increased by 9% to €1.6bn.
Together with other disruption, IAG said industrial action from pilots union BALPA had resulted in an adverse operating profit impact of €155m.
Chief executive Willie Walsh said the company had achieved good underlying results despite the strikes, which grounded around 1,700 flights in September.
Total revenue for Q3 rose 2% to €7.31bn, though passenger unit revenue fell by 1% following falls in the Europe, Asia Pacific and Latin American markets.
IAG warned that it expects full-year operating profit before exceptional items to be €215m lower than last year's €3.49bn, with passenger unit revenue expected to drop at constant currency and a slight improvement anticipated from non-fuel unit costs.
At 0900 GMT, the shares were down 0.1% at 519.40p.