Shares of International Consolidated Airlines Group SA fell more than 3% after the company issued a profit warning for 2019 amid pilot strikes that resulted in thousands of flight cancellations.
The British Airways PLC owner expects a €137 million profit hit due to the industrial action in September and a further €33 million over events including "threatened strikes" by Heathrow Airport employees. The company also projects that recent booking trends in its low-cost units will have an adverse financial impact of €45 million.
As a result, operating profit before exceptional items is expected to be €215 million lower in 2019 than a year ago, when it was at €3.49 billion.
Full-year capacity growth is projected to be about 4%, compared to the 5% previously projected.
British Airways pilots held strikes in early September amid a long-running pay dispute, resulting in an initial cancellation of 4,521 flights over seven days. Of these, 2,196 flights were reinstated, leaving 2,325 flight cancellations.
International Consolidated Airlines said there have been no further talks between British Airways and the British Airline Pilots Association. The company added that its offer of an 11.5% pay increase over three years was accepted by British Airways' other unions, which represent 90% of the airline's employees.
"Clearly any further industrial action will additionally impact IAG's full year 2019 operating profit," the company said.
International Consolidated Airlines was trading 3.2% lower around 12:45 p.m. in London.
