British Airways Owner Cuts Profit Target on Brexit Fallout
- IAG shares plunge as much as 34% on concerns about London hub
- EasyJet CEO seeks to keep U.K. in European aviation market
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British Airways owner IAG SA lowered its 2016 profit target as the U.K.’s vote to leave the European Union threatens to extend a drop in demand that started in June in the run-up to the historic referendum.
Operating profit this year will no longer increase at a level similar to the 70 percent surge posted in 2015, Chief Financial Officer Enrique Dupuy said in a statement issued hours after the vote became public. The company didn’t provide a scale for the earnings adjustment beyond saying that 2016 growth will still be “significant.”