IAG cuts its 2016 growth forcast

Currency movements have worked against the Aer Lingus owners...

IAG cuts its 2016 growth forcast

Photocall file photo

International Consolidated Airlines Group (IAG) has issued a profit warning after weak sterling values weighed on its balance sheet.

The group's operating profit fell by 3.6% in the company's third quarter.

During the three months it came to €1.21m - it reports that the sterling fall had a €162m impact on its bottom line. Its results are reported in euro - while its UK-based operation, British Airways sells tickets in pounds.

 

IAG now expects to return a €2.5bn full year profit - that's down from a €3.2bn profit forecast in January.

Chief Executive Willie Walsh said, "While strong, these results were affected by a tough operating environment with a very significant negative currency impact."

The group will pay an interim dividend of €0.11 per share.

A British Airways agreement will see the company contribute more to the company's pension scheme.