IAG warns on profits after BA pilots’ strike

A strike by British Airways pilots last month and other disruption hit summer quarter profits at parent company International Airlines Group.

The operating profit at the umbrella company for BA, Aer Lingus, Iberia, Vueling and Level dropped to €1.425 billion from €1.530 billion in the same period last year.

The pre-tax profit fell by 10.4% to €1.262 billion despite a 2.3% rise in passenger revenue to €6.536 billion as carryings rose by 3.1% to 34.5 million.

The group warned that full year profits would be €215 million down on the 2018 result of €3.85 billion at current fuel prices and exchange rates.

More: BA pilots threaten fresh strikes after profits warning claims

The strike by pilots at BA and threatened industrial action by Heathrow workers cost IAG €155 million.

IAG’s performance in the three months to September 30 was also affected by a €136 million hike in fuel costs.

CEO Willie Walsh said: “In quarter 3 we’re reporting an operating profit of €1,425 million before exceptional items, down from €1,530 million last year.

“These are good underlying results. As we said in September, our performance has been affected by industrial action by pilots’ union Balpa and other disruption including threatened strikes by Heathrow airport employees.

“In addition, our fuel bill increased by €136 million during the quarter with fuel unit costs up 4.2% at constant currency.

“At constant currency, passenger unit revenue decreased by 1.1% while non-fuel unit costs were up 1.1%.”

Looking forward, IAG said: “Passenger unit revenue is expected to be slightly down at constant currency and non-fuel unit costs are expected to improve at constant currency.”


Share article

View Comments

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.