Shares in British Airways owner IAG bounce as strike enters second day
Shares in British Airways’ parent company IAG are up by more than five per cent this morning as the airline suffers its second day of strike action.
Pilots who are members of the British Airline Pilots’ Association (Balpa) are into their second day of industrial action in an ongoing dispute over pay and working conditions.
Read more: British Airways strikes: Airline boss Alex Cruz blames ‘cynical actions’ of pilots union for walkout
BA has cancelled most of its flights and has told its customers not to go to the airport. The strikes have not affected BA CityFlyer, which flies out of London City Airport.
A walkout has also been planned for 27 September.
Yesterday IAG shares took a knock following the walkout, with shares closing down 1.53 per cent at 423.50p.
BA chief executive Alex Cruz apologised for the strikes yesterday.
“We’re very, very, very sorry that due to the cynical actions of the pilots’ union we found ourselves having to cancel flights affecting, indeed, thousands of passengers,” Cruz told Sky News.
“This is by all means an own goal – it’s punishing our customers first, it’s punishing our brand, it’s punishing 90 per cent of colleagues who have already accepted this 11.5 per cent deal. And frankly it’s punishing those pilots that want to come to work every day, day in and day out, and making British Airways the best airline in the world.”
Read more: Cruz control has not been smooth sailing for British Airways
Pilots have rejected an 11.5 per cent pay rise over the next three years, which they claim is not in line with the airline’s £2bn profits.
Yesterday Balpa general secretary Brian Strutton said: “Pilots are standing firm and have shown just how resolute they are today. British Airways needs to start listening to its pilots and actually come up with ways of resolving this dispute.”
BA has said the pay proposal is “generous” and has been accepted by the Unite and GMB unions which represent 90 per cent of its staff.