Airline company IAG, the parent company of British Airways, Iberia and Vueling, among others, has become more gloomy about its growth prospects. The group expects its capacity growth to come under considerable pressure in the coming three years due to the weak prospects for the global economy.
IAG now estimates that its capacity, measured by the number of kilometres flown times the number of seats in an aircraft, will increase by 3.4 percent per year between 2020 and 2022. Previously it was assumed that annual growth of 6 percent in the period between 2019 and 2023.
The expected delay also has an impact on the profit forecast, according to the group. IAG now expects to be able to increase its earnings per share by 10 percent per year instead of the earlier expectation of an increase of 12 percent.