BA seeks Brexit tourism boost as Ryanair downbeat

BA owner IAG SA predicted a surge in inbound tourism spurred by a weakening of the pound after the UK’s decision to quit the EU, just as discount rival Ryanair Holdings said the Brexit vote is likely to depress demand and force carriers to cut fares. IAG doesn’t plan to eliminate jobs or move assets away from Britain in the wake of the Brexit vote, and there will be no significant capacity cuts or fare discounting, CEO Willie Walsh said Tuesday. “The UK now becomes more attractive for tourists,” Walsh said. “Corporates were pausing on the uncertainty, and now we don’t expect them to bounce back as we would have expected had the vote been ‘Remain.’ In the long run, such demand effects tend to even out.” Ryanair CEO Michael O’Leary offered a starker analysis, saying he expects sterling to be weak for the next six to 12 months, compelling the low-cost carrier to “keep lowering fares to keep people flying.” Plans for growth in the UK will be put on hold, with 50 new planes due for delivery this year to be deployed in other markets. Carolyn McCall, who heads EasyJet and also spoke at the Brussels gathering, came down somewhere in the middle, saying that while there may be some short- or mid-term “turbulence,” demand remains strong. Airlines are still struggling to evaluate exactly how June 23’s referendum will impact their industry. While the weaker pound might stimulate visits to the UK, Ryanair is concerned that it will reduce the ability of Britons to fund vacations. An economic slowdown could undermine travel further, while a relocation of offices from London to continental Europe by key employers would damage one of the world’s strongest business-travel markets.<br/>