IAG Warns of Decline in Earnings After British Air Strikes
- IAG lowers outlook for 2019 operating profit after strikes
- U.K. airline to cut back capacity growth this year and next
A British Airways aircraft lands at London Heathrow Airport.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
British Airways owner IAG SA warned that challenges facing the European airline industry are set to continue into 2020 after cutting profit guidance for this year.
IAG lowered capacity growth in the final quarter and will provide details in November of a decrease next year, Chief Executive Officer Willie Walsh said on a call with analysts on Thursday. Earnings for this year will be about 6% lower than forecast in the wake of strikes at British Airways, its biggest unit, and depressed ticket prices at low-cost operations Vueling and Level.