Shares in British Airways’ parent company tumble

Shares in British Airways’ parent company tumble
Shares in British Airways’ parent company tumble

LONDON (AP) – Shares in British Airways’ parent company have tumbled after a catastrophic IT failure stranded thousands of passengers during a holiday weekend.

Shares in the International Airlines Group dropped about 3 percent in the first day of trading Tuesday after a weekend that saw hundreds of flights cancelled.

Shares in IAG, which is also listed in Madrid, had already fallen heavily in trading in Spain on Monday.

George Salmon, equity analyst at Hargreaves Lansdown, says that while BA is now running a full schedule, IAG is counting the cost of a calamitous weekend. Salmon says the cost of compensation and refunds could well run into the tens of millions.

Salmon says “the whole sorry episode has undeniably put a dent in BA’s reputation for delivering a premium service.”

Passengers stand at a British Airways check-in desk after the airport suffered an IT systems failure, at London”s Gatwick Airport, Saturday, May 27, 2017. British Airways canceled all flights from London’s Heathrow and Gatwick airports Saturday as a global IT failure caused severe disruption for travelers on a busy holiday weekend. (Gareth Fuller/PA via AP)
FILE – In this Tuesday, Jan. 10, 2017 file photo, British Airways planes are parked at Heathrow Airport during a 48hr cabin crew strike in London. Air travelers faced delays Saturday, May 27, 2017 because of a worldwide computer systems failure at British Airways, the airline said. BA apologized in a statement for what it called an “IT systems outage” and said it was working to resolve the problem. It said in a tweet that Saturday’s problem is global.(AP Photo/Frank Augstein, file)