Brexit dents IAG plans

IAG — which owns Aer Lingus, British Airways, and Iberia — trimmed growth plans for 2016 further and gave a cautious outlook for annual earnings, due to weaker trading and the slump in sterling after the British vote to leave the EU.

The EU referendum outcome has caused the value of the pound to fall versus the dollar and euro, making it more expensive for UK travellers, and prompting consumer and business uncertainty.

In addition, attacks in Europe and a failed coup in Turkey have hit demand for travel, prompting rival airlines easyJet, Lufthansa, and Air France-KLM to warn on the impact of political upheaval and security concerns.