Currency costs curtail IAG

IAG, owner of British Airways and Iberia, blamed currency movements for costing it €148 million (£124m) in the latest quarter of trading, mainly due to the weak pound.

Underlying operating profits of €555m for the April to June period, up from €530m a year ago, were slightly below forecasts.

The airline group said its business had been affected by the impact of terror attacks, strikes and the uncertainty around the UK’s EU referendum.

“This led to a softer than expected trading environment, especially in June,” said IAG chief executive Willie Walsh.

The airline group has also scaled back its forecasts for profit growth across 2016.

It now expects operating profit to rise by a “low double-digit percentage” this year, compared with earlier predictions of a rise of about 40%.

Europe’s airline sector has been under pressure, with both Lufthansa and Air France-KLM warning of the impact of terror attacks.

Air traffic control strikes in France also affected services.

Profits at the parent group of British Airways rose but by less than had been hoped.