IAG places blame on British Airways strike for decline in Q3 2019 operating profit

Darren Wood
By Darren Wood October 31, 2019 11:19

IAG places blame on British Airways strike for decline in Q3 2019 operating profit

International Airlines Group has placed blame on UK carrier British Airways’ pilot strike in September for its decline in third-quarter operating profit.

The group’s operating profit during its Q3 2019 results stood at €1.42 billion before exceptional items, compared with €1.53 billion experienced in the same period last year.

British Airways, owned by IAG, had to cancel nearly 1,600 flights on 9 and 10 September after it was left with “no option” as a result of the industrial action called by cockpit union BALPA – the first pilot walkout in the airline’s history.

IAG Chief Executive Willie Walsh said that aside from the disruption, the airline group had performed well. 

“These are good underlying results,” he said in a statement. “Our performance has been affected by industrial action by pilots’ union BALPA.”

IAG added that its full-year operating profit is now expected to be lower than the previous figure of €3.48 billion.

Walsh added that fuel expenditure had gone up as well as an experience of passenger capacity in the third quarter.

He added: “Our fuel bill increased by €136 million during the quarter with fuel unit costs up 4.2% at constant currency.

“At constant currency, passenger unit revenue decreased by 1.1% while non-fuel unit costs were up 1.1%.”

Darren Wood
By Darren Wood October 31, 2019 11:19