Shares in BA parent face stormy session

Shares in International Airlines Group (IAG), the owner of British Airways, were set for a turbulent ride today as the market reacted to the airline’s potentially costly IT failure over the weekend.

Analysts warned that IAG, which is headed by CEO Willie Walsh, was likely to take a hit amid fears that the fall-out from the meltdown could last for days with the group facing a possible compensation bill in excess of £100 million.

BA has blamed the computer blackout on a “power supply issue”, saying there was no evidence of it resulting from a cyber attack.

A Heathrow Airport spokeswoman yesterday said: “Following a worldwide IT system issue, there continues to be some disruption to British Airways flights from Heathrow.”

The failure also hit passengers flying from Gatwick as well as those travelling to the two London hubs from foreign airports.

Unions rounded on the flag carrier, claiming the fiasco could have been avoided if IT jobs had not been outsourced.

Independent aerospace industry analyst Howard Wheeldon said: “Yes, this will cost the airline dear but this time I do not believe passengers will be in any hurry to use British Airways again if there are other options available.

“In respect of how the airline handled the crisis I conclude that this is the single worst event in the airline’s post privatisation history. “I suggest that the minimal cost of recovery and claims cost on the airline will be in excess of £120m this year. Next year will see the reputational cost also being added in.” 0 BA’S parent company IAG is headed by Willie Walsh