IAG trims capital expenditure expectations

Airline group IAG, which owns Aer Lingus and British Airways, is to cut back on planned capital expenditure, it announced. The group is suffering from a “tough operating environment”, particularly the fall in sterling.

“FX is becoming a material headwind, mainly on the translation of sterling profits at British Airways, and recent exchange rate moves suggest this challenge will continue to grow.”

Gerald Khoo, analyst at Liberum