IAG To Slow Expansion After Brussels Attacks

IAG said it would slow its plans to fly more routes in the short term, in response to weaker demand from high-margin passengers and a general slowdown after the Brussels attacks.

IAG posted operating profit of EUR€155 million for the three months to March 31, due to lower fuel prices and ongoing plans to reduce costs.

That compared to the EUR€25 million operating profit it posted in the year-earlier period.

Total revenue for the quarter was EUR€5.08 billion, up 7.9 percent from the previous year.

IAG, whose airline portfolio includes British Airways, Iberia, Vueling and Aer Lingus, stuck to its forecast for 2016 profit, and said reaching that target would be helped by a plan to cut costs, excluding fuel, by about one percent during the year.

IAG chief executive Willie Walsh said that while January and February were in line with trading seen last year, trading had become more difficult recently.

"March revenue was affected by the timing of Easter and the Brussels terrorist attacks with the latter continuing into quarter two," Walsh said in a statement.