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British Airways announces profit warning after pilot strikes

by LLB Reporter
26th Sep 19 11:17 am

International Airlines Group (IAG) who own British Airways have taken a €137m hit over the two day pilot strikes that saw 4,521 flight cancelled.

Operating profits before are to be €215 lower compared to last year. IAG further revealed that they took another hit from the threatened strikes costing €33m, the firm said growth will be slower over the next 18 months.

IAG chief executive Willie Walsh also announced that the collapse of Thomas Cook will help benefit IAG as they will look to take on empty slots at Gatwick Airport.

Walsh said, “If there’s slots available we’ll be looking at slots, but through the normal way, through the slot pool.

“But if there is an opportunity to acquire some slots through the administration… We clearly see Gatwick as an opportunity for us and that is something we will be looking at.”

Walsh added, “Clearly bookings have been disrupted by the industrial action, but when we dig into it, we’re not seeing any underlying issue.

“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 early morning trading on Thursday shares were down 16.1p at 464p.

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