International Consolidated Airlines’ (LON:IAG) British Airways unit cancelled and delayed flights at London’s Heathrow yesterday, due to problems with a supplier’s IT systems, Reuters has reported. The news comes after IT problems at the British flag carrier left more than 75,000 passengers stranded at Heathrow and Gatwick airports during a long weekend in May last year.
IAG’s share price has slipped marginally into the red in today’s session, having given up 0.29 percent to 691.80p as of 10:31 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.18 percent higher at 7,689.92 points.
Supplier’s issues hit BA flights
Reuters reported last night that according to Heathrow’s departure board, a number of British Airways flights were canceled or being delayed by several hours at the airport. The delays followed an earlier fire alert at Heathrow’s air traffic control tower.
“We are working with our supplier to resolve the matter and are sorry for the disruption to our customers’ travel plans,” British Airways said in a statement, as quoted by the newswire.
Last year’s computer failure was caused by a power supply issue near Heathrow, stranded 75,000 customers over a holiday weekend and eventually cost the FTSE 100 group about £100 million.
Analyst ratings update
HSBC, which sees IAG as a ‘sell,’ set a price target of 600p on the stock yesterday, while Deutsche Bank reaffirmed the British Airways and Iberia parent as a ‘buy,’ valuing the shares at 750p. According to MarketBeat, the company currently has a consensus ‘buy’ rating and an average price target of 723.07p.
Earlier this week, the FTSE 100 group unveiled plans to expand its long-haul network from Vienna with its low-cost carrier Level.