Airline owner IAG, which owns British Airways and Iberia, reported slightly lower sales and profits than expected for the third quarter on Thursday.
The stock opened nearly 4 percent down, but had recovered the entire initial price drop just under half an hour into London trading and was trading around the zero mark.
IAG reported an operating profit of 1.4 billion euros, compared to the expected 1.5 billion euros according to Bloomberg News analyst estimates.
Profits have been squeezed by a strike in the quarter, in which British Airways' cabin crew union demanded higher wages. The cost is estimated at £155 million. The dispute is not yet considered settled.
”We will provide updates as soon as there is something to update,” said Willie Walsh, CEO, according to Bloomberg.
In addition, employees at London Heathrow Airport have gone on strike, which has affected the company.
The macroeconomic environment is expected to remain subdued into 2020, Willie Walsh further stated, from a deterioration in 2019 compared to 2018 to further weakening in the coming year.
Turnover came in at 7.3 billion euros, compared to the expected 7.4 billion euros.
However, IAG reiterated its 2019 forecast of profit before items affecting comparability €215 million lower than 2018 pro forma profit (adjusted for changes in group structure).
Source: Nyhetsbyrån Direkt
