British Airways’ IT meltdown
Shares in British Airways’ parent company slipped Tuesday after a catastrophic IT failure stranded thousands of passengers during a long holiday weekend.
British shares of International Airlines Group dropped 1.4 percent after a weekend that saw hundreds of flights cancelled after a power surge led to an IT meltdown. Earlier in the day they fell as much as 4.6 percent. Although the airline was running a full schedule of flights on Tuesday, it acknowledged passengers were still facing baggage delays.
The company apologized, but shareholders were not forgiving of a debacle that some estimate could cost the airline tens of millions of pounds.
IAG is battling tough competition in the airline sector, even as it has faced pressure with a weaker pound following Britain’s decision to leave the European Union.
U.S.-listed shares of IAG, which also runs Aer Lingus, Iberia and Vueling, fell 1.4 percent to $15.48.