IAG warns of falling business traffic, but profit forecast remains
IAG has warned of falling demand for business travel amid an economic slowdown in European and North American markets, according to Reuters and The Financial Times. IAG stated “indications so far for October point to a softer demand picture” in premium passenger traffic and air cargo. The airline group, which owns British Airways and Iberia, said it is considering capacity cuts to better meet the reduced demand.
British Airways was a strong performer in 1H2011, largely due to its exposure to high yielding long-haul business travel markets. Despite the fall in business travel, IAG maintained it is on course “to produce significant growth in operating profit in 2011”.