Aer Lingus-owner International Airlines Group said it would slow the plans it had to fly more routes in the short term, in response to weaker demand from high-margin business-travelers and a general slowdown after the Brussels attacks.
IAG, whose portfolio also includes Iberia, Vueling and British Airways, stuck to its forecast for 2016 profit, and said reaching that target would be helped by a plan to cut its 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," he said in a statement on Friday.
The more cautious outlook from IAG came after American Airlines Group Inc said earlier in April that a key revenue measure would fall in the second quarter after a surge in rivals' flights across the Atlantic and from lower prices on trips booked at the last minute.
IAG's rival Lufthansa will publish its first-quarter results on May 3.
For the three months ended March 31, IAG posted operating profit of 155 million euros, beating a consensus forecast of 145 million euros, due to lower fuel prices and its ongoing plan to reduce costs.
That compared to the 25 million euros operating profit it posted in the year-earlier period. (Reuters)
Source: www.businessworld.ie
