IAG: share falls after company warns of earnings decline
(CercleFinance.com) - International Airlines Group said it expects 2019 earnings to be below those of 2018, after being forced to cancel over 4,500 flights in September, sending its shares down sharply on Thursday.
At current fuel prices and exchange rates, IAG expects its 2019 operating profit before exceptional items to be 215 million euros lower than in 2018 (3.48 billion euros).
The airline group previously expected its 2019 operating profit before exceptional items to be in line with 2018 pro-forma.
In September, a strike by British Airways main pilots' union led to a cancellation of 4,521 flights over a period of seven days.
IAG said the net financial impact of the strike is estimated to be 137 million euros.
In addition, other disruption events, such as threatened strikes by Heathrow Airport employees, had a further net financial impact of 33 million euros, the company said.
Its shares are down 3.3% in early morning trading today.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
At current fuel prices and exchange rates, IAG expects its 2019 operating profit before exceptional items to be 215 million euros lower than in 2018 (3.48 billion euros).
The airline group previously expected its 2019 operating profit before exceptional items to be in line with 2018 pro-forma.
In September, a strike by British Airways main pilots' union led to a cancellation of 4,521 flights over a period of seven days.
IAG said the net financial impact of the strike is estimated to be 137 million euros.
In addition, other disruption events, such as threatened strikes by Heathrow Airport employees, had a further net financial impact of 33 million euros, the company said.
Its shares are down 3.3% in early morning trading today.
Copyright (c) 2019 CercleFinance.com. All rights reserved.