British Airways’ parent International Airlines Group (IAG) has warned that its full-year profits will be 6% lower than last year after severe pilot strikes earlier this month, the Financial Times reported.
IAG said operating profits would be €215 million lower than 2018, when it generated €3.49 billion. This is mainly due to the disruption, which saw pilots walk out for 48 hours on September 9 and 10.
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Further strike action on September 27 was narrowly prevented.
It had previously expected 2019 profits to be flat with 2018. Shares in IAG fell 3% in early London trading.
What was IAG’s first pilots’ strike in the airline’s history led to an initial cancellation of 4,521 flights over a period of seven days; 2,196 flights were later reinstated, leaving 2,325 cancellations.
The total financial impact of the strikes would be around €137 million, IAG said.
Further disruption including strike threats at Heathrow airport was set to cause a further €33 million hit, while adverse booking trends at its low-cost airlines are expected to cost it a further €45 million.