Strikes by British Airways pilots in a row over pay and conditions forced owner International Airlines Group to issue a profits warning today.
The airline combine disclosed that operating profits were expected to be €215 million down on the €3.485 billion achieved in 2018.
IAG calculated the impact of industrial action by BA pilots during September at €137 million – with a further impact from any additional walkouts.
A threatened strike by staff at its Heathrow hub cost a further €33 million.
Latest booking trends at IAG’s budget carriers Vueling and Level are estimated to have a further “adverse financial impact” of €45 million.
Action by the British Airline Pilots Association initially scheduled for September 9, 10 and 27 led to an initial cancellation of 4,521 flights over a period of seven days.
Subsequently, 2,196 flights were reinstated leaving 2,325 cancellations.
BA also introduced “flexible commercial policies” on 4,070 flights not directly affected by the industrial action.
IAG chief financial officer Steve Gunning said: “These policies enabled customers to re-book flights or receive a refund. The net financial impact of the industrial action is estimated to be €137 million.”
And he revealed: “There have been no further talks between British Airways and Balpa.
“The airline’s offer of a 11.5% pay increase over three years still stands and has been accepted by British Airways’ other unions, representing 90% of the airline’s employees.
“Clearly any further industrial action will additionally impact IAG’s full year 2019 operating profit.
“In addition, there were further disruption events affecting British Airways in the quarter, including threatened strikes by Heathrow Airport employees, which had a further net financial impact of €33 million
“IAG estimates that the latest booking trends in its low cost segments, primarily Vueling and Level, will have an adverse impact of €45 million.”