International Airlines Group (IAG) said it expects its 2019 operating profit before exceptional items to be €215m lower than 2018 on the back of industrial action by British Airways main pilots’ union.
In addition, the performance has been affected by threatened strikes from Heathrow Airport employees, IAG said in a statement.
Meanwhile the company estimates that the latest booking trends in its low cost segments (primarily Vueling and Level) will also have an adverse financial impact on the group.
Last year IAG reported a profit of €3.5bn.
Passenger unit revenue is expected to be slightly down at constant currency, compared to flat guidance previously, and non-fuel unit costs are expected to improve at constant currency, unchanged from previous guidance.
Elsewhere, capacity growth for the fourth quarter of 2019 is now expected to be about 2pc, which is 1.2 points below previous guidance, and full year capacity growth is expected to be about 4pc, compared to 5pc previously.
The group added that any further industrial action “will additionally impact IAG’s full year 2019 operating profit.”
