Industrial action to cost IAG a reported EUR170 million in 2019

    IAG reported (07-Oct-2019) the following strategic updates and profit guidance for the full year 2019:

    • At current fuel prices and exchange rates, IAG expects operating profit before exceptional items to be EUR215 million lower than 2018 pro forma (EUR3.48 billion);
    • Net financial impact of industrial action by BALPA is estimated to be EUR137 million due to cancellations and flexible commercial policies enabling customers to re-book or receive a refund;
    • Additional disruption affecting British Airways, including threatened strikes by London Heathrow Airport employees, had a further net financial impact of EUR33 million;
    • Latest booking trends in IAG‘s low cost segments (primarily Vueling and LEVEL) will have an adverse financial impact of EUR45 million for the year;
    • Capacity growth for 4Q2019 is expected to be about 2%, which is 1.2ppts below previous guidance, and full year capacity growth is expected to be about 4%, compared with 5% previously. [more – original PR]