Shares in the parent company of British Airways fell on Tuesday, following a calamitous weekend of cancelled flights and stranded passengers that has led to calls for the head of the airline's chief executive.
A catastrophic failure of BA's computer systems left many scheduled flights grounded and an estimated 75,000 passengers stranded at Heathrow and Gatwick airports or abroad.
IAG counts the cost
As parent company International Airlines Group (IAG) started to count the cost in compensation to angry passengers, the shares in London were down 2.6% to 598p.
This followed a fall of 2.8% for the Madrid-listed shares on Monday.
BA, whose parent IAG also owns Spanish carriers Iberia and Vueling and Dublin-based Aer Lingus, blamed the computer outage on a power surge at a London data centre and said back-up systems had failed to work.
Cruz not to resign
Alex Cruz, chief executive of BA, said on Monday that he would not resign, telling reporters that it "wouldn't be much use" and denying that outsourcing IT systems had been to blame.
"There was a power surge and there was a back-up system which did not work at that particular point in time," he said.
Nevertheless, media focus since flights started returning to normal on Monday has been firmly upon the company's detailed attention to cutting costs - the strategic directive of group CEO Willie Walsh.
Since issuing a profit warning in June last year, IAG has sought to cut costs by slashing 700 jobs in the UK outsourcing IT systems to Tata Consultancy Services in India and charging for short-haul meals.
Record Q1 profits
The group proceeded to report a record first quarter profit, and shares – despite today's losses – remain 42% higher than after June's profit warning.
Walsh has a fine record of turning around the fortunes of ailing airlines, resucing both Aer Lingus and Iberia from near bankruptcy, but critics have said his cost focus has put the squeeze on the British Airways premium brand.
Analysts have estimated the costs of compensation to passengers who were affected by this weekend's debacle could amount to as much as £100m.
Shareholder reaction muted
The reaction of shareholders has been reasonably muted in response.
“It is surprising that the profit taking has been confined to a 3% drop," said Chris Beauchamp, chief market analyst at IG.
"But with the operating margin at its strongest in several years and forward earnings per share seeing some of the best growth in the industry this might be a good chance to buy some more, especially given the improving economic outlook and the near-4% dividend yield."