British and Iberia slow growth plan by terrorist attacks – Financial Journal

IAG (the company that brings together British Airways and Iberia) closed the first three months of the year with an overall improvement in their large numbers. But the firm warned that it will moderate its short-term growth plans to detect problems in the application.

Specifically, the company warns that terrorist attacks to Brussels are affecting revenue for the second quarter and It is noticing a slowdown in demand for business tickets, luggage Expansion. .

IAG will reduce capacity growth to 4.9% this year, compared with 5.2% originally planned plan. “Revenues March were affected by the date of Easter and by the terrorist attacks of Brussels, whose effects continue to be felt in the second quarter,” said Willie Walsh, CEO of IAG.

In connection with weak demand for business, Walsh highlighted the uncertainty in Brazil-which is also alert the rest of commercially aviation companies and companies are being cautious before the referendum on British departure or stay in the European Union , scheduled for next June 23.

the warnings IAG off alarms on the market, always sensitive to the impact of terrorism in the aviation sector, which is caused shares of air holding fell more 4% in the stock market. Despite these warnings, the year has started strongly to IAG, which came into profits in the first quarter, usually one of the weakest for airlines, but this year helped that Easter fell in March. He managed a profit of 104 million, compared to losses of 26 million the same period of 2015.

The operating profit before exceptional items stood at 155 million euros, six times compared to 25 million earned the previous year, and revenue grew 7.9% to 5,078 million euros.

increased demand in its major markets, improving the load factor and falling fuel costs, by falling oil prices, are pushing hard to IAG, which has suffered at the start of the year, the appreciation of the US dollar against the euro and sterling.

“We are announcing a profit from operations of 155 million euros before exceptional items, representing an increase of € 130 million compared to last year. Is a good result and shows a solid increase in a quarter is traditionally the weakest, “remarked Walsh

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