British Airways parent cuts capacity, reviews spending on Brexit

London

BRITISH Airways parent IAG SA will cut capacity and put spending under review in the wake of the UK's decision last month to quit the European Union, with the uncertainty depressing profit growth this year.

Operating profit excluding one-time items is now expected to grow by a low double-digit percentage, the London-based IAG said last Friday. Prior to the June 23 "Brexit" vote, the company had forecast an earnings increase in line with the 950 million euro (S$1.4 billion) gain in 2015, or roughly 40 per cent. The new guidance reflects a downward revision of about 600 million euros, based on an assumption of a 15 per cent increase, according to Bloomberg calculations.