IAG warns on profits after BA pilots’ strike

A strike by BA pilots last month and other disruption hit summer quarter profits at parent company IAG. The operating profit at the umbrella company for BA, Aer Lingus, Iberia, Vueling and Level dropped to E1.425b from E1.530b in the same period last year. The pre-tax profit fell by 10.4% to E1.262b despite a 2.3% rise in passenger revenue to E6.536b as carryings rose by 3.1% to 34.5m. The group warned that full year profits would be E215m down on the 2018 result of E3.85b at current fuel prices and exchange rates. The strike by pilots at BA and threatened industrial action by Heathrow workers cost IAG E155m. IAG’s performance in the three months to September 30 was also affected by a E136m hike in fuel costs. CEO Willie Walsh said: “In quarter 3 we’re reporting an operating profit of E1,425m before exceptional items, down from E1,530m last year. “These are good underlying results. As we said in September, our performance has been affected by industrial action by pilots’ union Balpa and other disruption including threatened strikes by Heathrow airport employees. “In addition, our fuel bill increased by E136m during the quarter with fuel unit costs up 4.2% at constant currency. “At constant currency, passenger unit revenue decreased by 1.1% while non-fuel unit costs were up 1.1%.”<br/>