logo-loader

IAG shares lower after profit downgrade

Published: 08:37 04 Nov 2016 GMT

1-BA4
Not exactly grounded. IAG has trimmed its profit forecasts.

Shares in International Airlines Group PLC (LON:IAG) fell 2%in early trade after it downgraded its long-term profit forecasts.

The owner of British Airways and Iberia said it expects earnings before interest, tax, depreciation and restructuring to average €5.3bn in the period to 2020.

Meanwhile the capital budget has also been cut – by around €800mln a year to €1.7bn a year,

Its profit margin and earnings growth targets remain intact.

The numbers were published ahead of a capital markets day for City analysts and alongside passenger stats. Traffic was up 3.1% in October, while premium traffic was ahead 4.7%.

IAG shares, which are down 26% in the year to date, fell 11p to 439.8p.

FTSE rises ahead of Easter weekend, JD Sport gains on upbeat outlook -...

The FTSE 100 gained on the final morning of this shortened Easter trading week. Festive cheer was limited though, as Thames Water confirmed shareholders would not provide it with a £500 million rescue package, prompting speculation over the London supplier’s future. On a more positive...

31 minutes ago