International Airlines Group (IAG) has updated its numbers and profit guidance today… and it’s not good news.
It seems I use this British Airways Boeing 787-9 when I talk about strikes with the airline – Image, Economy Class and Beyond.
The group – which owns British Airways, Iberia, Aer Lingus, LEVEL and Vueling has been hit hard thanks to the BALPA pilots walking out on strike.
In total, the strikes have led to an initial cancellation of 4,521 flights over a period of seven days. Subsequently, 2,196 flights were reinstated leaving 2,325 cancellations. On top of this, British Airways applied new policies to allow for rebooking or refund.
The net action of this? It’s estimated to be €137 million. On top of that, strike action by Heathrow Airport employees led to further impact of €33 million.
Other segments can’t smile too much though – as both LEVEL and Vueling are noting that booking trends are trending downwards – with an adverse financial impact of €45 million.
As to the strikes
I’m going to leave it in IAG’s own words here
There have been no further talks between British Airways and BALPA. The airline’s offer of a 11.5 per cent pay increase over three years still stands and has been accepted by British Airways’ other unions, representing 90 per cent of the airline’s employees. Clearly any further industrial action will additionally impact IAG’s full year 2019 operating profit.
With neither side talking at this juncture, this isn’t what I’d call a good start to resolving the strike…
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So the pilots give way while IAG is adamant and want to sit on their huge hoard of money. Not the best of outlooks.