Airlines
Older than 7 days

IAG and British Airways brace for 2020 headwinds

British Airways Airbus A350-1000
British Airways Airbus A350-1000, © Airbus
LONDON - IAG takes a 137 million Euro hit from September pilot walkouts at British Airways. The aviation group slashed its 2019 earnings forecast.

Two days of pilot strikes - the first since 1979 - forced British Airways to cancel 2,325 flights. "The net financial impact of the industrial action is estimated to be 137 million Euro," IAG said in a recent earnings warning.

The airline group is also shaken by "latest booking trends in its low cost segments" Vueling and Level that will trigger "an adverse financial impact of 45 million Euros".

At current fuel prices and exchange rates, IAG therefore expects its 2019 operating profit before exceptional items to be 215 Euro million lower than 2018 pro forma (3,485 million Euro).
 
The 2020 outlook seems also bleak. "Airlines are moderating their capacity and growth plans," IAG CEO Willie Walsh warned investors of headwinds. IAG will hold short at 4 percent capacity increases this year - skipping the original 5 percent target. Walsh hinted to trim growth further in 2020 as the airline braces for overcapacities in the European aviation market.

While British Airways pilot union Balpa scheduled no additional strikes, "there have been no further talks between British Airways and Balpa," according to IAG. The airline offered BA pilots a pay increase of 11.5 per cent over three years.
© aero.uk | 01/10/2019 08:59


Comments (0) Go to front page

To write a comment, please sign up at aero.uk or log in.

Headlines

Community

Discussions on current events and developments in the aviation industry

Pilot Jobs at SkyJobs.com by SkyTest®

Special: Flight Training

There are new
stories at aero.uk

Reload main page