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Daily Mirror
Daily Mirror
Business
James Andrews

British Airways owner warns profits will be down £190million as strikes hit home

British Airways owner International Airlines Group's has laid bare what a summer of industrial action by pilots has cost it.

Some 4,521 flights were cancelled over a period of seven days, although the airline managed to reinstate 2,196 of them.

Then there were the other strikes threatened by the Heathrow Airport employees and more.

The airline reacted, allowing customers refunds or new flights, but it wasn't free.

IAG has just revealed the pilots strike alone has cost it more than £120million, while other threatened strikes added almost £30million more to the bill.

"At current fuel prices and exchange rates, IAG therefore expects its 2019 operating profit before exceptional items to be €215 million [ £190.46million] lower than 2018," chief financial officer  Steve Gunning said.

The strikes will hit the firm's bottom line hard (PA)

Worryingly for the airline, the matter still isn't resolved.

"There have been no further talks between British Airways and BALPA [British Airline Pilots Association]," Gunning said.

"The airline's offer of a 11.5% pay increase over three years still stands and has been accepted by British Airways' other unions, representing 90% of the airline's employees."

But pilots holding off mean the costs of the dispute might not be over quite yet.

"Clearly any further industrial action will additionally impact IAG's full year 2019 operating profit," Gunning said.

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