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BA owner IAG lowers 2016 profit outlook
July 29, 2016 / 6:25 AM / a year ago

BA owner IAG lowers 2016 profit outlook

PARIS, July 29 (Reuters) - British Airways-owner IAG posted a lower than expected quarterly operating profit and said it expected 2016 profit to rise by a “low double digit” percent after attacks, strikes and Britain’s vote to leave the European Union impacted travel demand and hit results.

IAG, which also groups carriers Iberia, Vueling and Aer Lingus, had initially forecast in February that it would grow 2016 profit by more than 900 million euros ($997 million), equivalent to a 40 percent rise on last year’s result, but after the Brexit vote on June 23, it said it no longer expected such a big increase.

IAG on Friday reported underlying operating profit up 4.7 percent to 555 million euros for the three months ended June 30, its second quarter, behind a consensus forecast of 562 million euros.

The group has already cut capacity growth plans for 2016 after attacks led to weaker trading and said on Friday its capacity and capex plans for 2017 were also under review. ($1 = 0.9024 euros) (Reporting by Victoria Bryan, editing by James Davey)

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