Disastrous bank holiday IT failure
The IT failure at British Airways in May that left thousands of travellers unable to check in baggage cost the airlines owners International Airlines Group (IAG) £58m.
The group which also owns Iberia and Aer Lingus had to pay £58m in compensation and baggage claims after the IT problems during the end of May bank holiday weekend.
Around 75,000 passengers faced severe disruption over three days of chaos which say 726 flights cancelled and left some stranded.
The problem occurred because an engineer disconnected a power supply BA said.
Despite the extra cost IAG reported its half year operating profit before exceptional items was up 37 per cent to €975m (£871m).
Willie Walsh, IAG Chief Executive Officer, said: “The underlying trend in unit revenue improved, benefitting partially from Easter and a weak base last year.
“Non-fuel unit costs before exceptional items are up, at constant currency. These costs include the financial impact of the power failure which affected British Airways’ customers.
” Sales continue to be well ahead of our expectations. We’ve ordered three additional aircraft and are considering other European bases for the operation.”