IAG hit by weak GBP

Victoria
By Victoria July 29, 2016 13:22

IAG hit by weak GBP

British Airways stated that currency movements cost it €148m (£124m) in the latest quarter of trading, due to the weak pound. IAG reported underlying operating profits of €555m for Q2 2016 (April-to-June), up from €530m for Q2 2015. IAG said its business had been affected by terror attacks, strikes and the uncertainty around the UK’s EU referendum. “This led to a softer than expected trading environment, especially in June,” said IAG chief executive Willie Walsh. The airline group has also scaled back its forecasts for profit growth across 2016. It now expects operating profit to rise by a “low double digit percentage” this year, compared with earlier predictions of a rise of about 40%. Earlier this year, IAG said it had slowed plans to fly more routes this year, and in its latest results it also said its capacity and investment plans for next year were under review. This looks like thinly-veiled code for aircraft delivery deferrals are being considered.

Victoria
By Victoria July 29, 2016 13:22