IAG lowers 2016 profit outlook

IAG has posted a lower than expected quarterly operating profit and said it expected 2016 profit to rise by a "low double digit" percent. It attributes the low profit outlook to attacks, strikes and Britain's vote to leave the European Union. IAG, which owns carriers British Airways, Iberia, Vueling and Aer Lingus, had initially forecast in February that it would grow 2016 profit by more than 900 million euros ($997 million), equivalent to a 40% rise on last year's result. But after the Brexit vote on June 23, it said it no longer expected such a big increase. It says the EU referendum impacted travel demand and hit results.

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