Pilot strikes crash profits
BA warns industrial action cost £121m
THE owner of British Airways said £190million will be wiped off its profits this year as it counts the cost of this month’s pilot strikes.
Thousands of flights were cancelled on September 9 and 10. And while today’s day of industrial action was called off last week, BA had already cancelled some flights in preparation.
The impact of the pilot strikes on IAG’s profits this year will be £121million, the firm said yesterday.
IAG admitted that no new talks had taken place with the pilots’ union BALPA.
Profits at IAG, which also owns Iberia and Aer Lingus, were further dented by a separate strike by Heathrow Airport employees.
To add to its problems, there has been a slowdown in booking for budget carrier up 61.1 at 7351.1 Ferguson GlaxoSmithKline Halfords Hays HSBC Imperial Brands International Airlines Grp ITV Kingfisher Land Securities Legal & General Lloyds Marks & Spencer Morrison National Grid Next Ocado Pearson Prudential Reckitt Benckiser 5914.0 1711.2 174.1 147.5 619.2 1798.2 Oil +22.0 +31.2 -0.6 +2.5 +3.4 -267.3 461.0 -19.1 124.9 -0.2 201.6 -0.6 854.8 +15.0 246.6 +1.7 53.6 +0.2 180.3 -1.7 199.9 +1.8 887.0 +23.7 6028.0+232.0 1294.0 -5.0 740.0 -120.8 1441.5 +23.0 6577.0+156.0 arms Vueling and LEVEL. IAG chief executive Willie Walsh said: “Clearly bookings have been disrupted by the industrial action, but when we dig into it we’re not seeing any underlying issue.”
Walsh also claimed the airline would benefit from further collapses of smaller rivals, and said he was looking at acquiring Gatwick slots used by Thomas Cook.
The firm’s share price fell 3.9 per cent in trading yesterday, and wiped £350million off its £9.6billion stock market value. = $62.29 RELX 1925.5 Rentokil Initial 462.9 Rio Tinto 4165.5 Rolls-Royce 785.6 Royal Dutch Shell B 2358.0 Royal Mail 210.8 RSA 525.0 RBS 204.9 J Sainsbury 220.6 SSE 1240.0 Severn Trent 2135.0 Serco 147.5 Sports Direct 271.8 Smith & Nephew 1962.0 Smiths WH 1954.0 Stagecoach 136.2 Standard Chartered 680.4 Standard Life Aberdeen 280.6 TalkTalk 103.8 Taylor Wimpey 160.6 +41.0 +5.9 -11.0 +4.8 +29.5 -2.1 +7.2 +1.4 +4.1 +13.5 +64.0 +1.2 -2.4 +24.5 -37.0 -1.0 +5.4 +3.5 +2.9 +0.6 ALL Bar One and Harvester owner Mitchells & Butlers saw a bounceback in drinks sales, helped by Britain’s recent Indian summer.
The group, which also owns the Toby Carvery and Browns’ chains, said takings rose 3.3 per cent in the eight weeks to September 21.
The rise was driven by a four per cent rise in drink sales, although food sales growth fell to 2.1 per cent. Tesco Thomas Cook Unilever United Utilities Vodafone Reach PLC 240.9 3.5 4903.0 813.4 162.9 91.5 +3.0 0.0 +41.5 +22.6 +2.3 +0.5