British Airways-owner reports profits dive as weak sterling bites

IAG, parent group of British Airways and Spanish carrier Iberia, reported on Friday a 74-percent slump in first-quarter net profit, in large part owing to a weak pound.

Profit after tax slid to 27 million euros ($30 million) in the first three months of the year from 104 million euros in the first quarter of 2016, IAG said in an earnings statement.

“The impact of currency exchange was 32 million euros in the quarter due to the translation of sterling profit into euros,” said IAG chief executive Willie Walsh.

Sterling slumped by around 15 percent in value last year, largely owing to Britain voting to exit the European Union, hurting IAG as it converts income from BA ticket sales into euros.